Emerging Asian currencies were largely range-bound on Friday, posting weekly losses, as hawkish comments by some Federal Reserve officials tempered expectations of impending rate cuts and dampened risk sentiment.
The Philippine peso weakened 0.4 percent , touching a five-month low after data showed annual inflation came in at 3.7 percent last month due to higher food prices.
The Bangko Sentral ng Pilipinas (BSP) will meet on Monday for a monetary policy decision, kicking off a new round of Asian central bank meetings this month. The BSP is likely to keep its key rates on hold until at least the third quarter, according to a Reuters poll.
The South Korean won which eased 0.4 percent , was one of the region’s top laggards. The Thai baht dipped 0.1 percent , standing at its lowest level since Oct. 10.
Both won and baht were poised for their fourth weekly losses.
Earlier on Friday, Thailand’s commerce ministry said inflation dropped for a sixth straight month in March, but was still outside the central bank’s target range.
A slide in US Treasury yields on Thursday failed to lift assets in Asia, as several Fed officials struck a cautious tone on easing monetary policy. The benchmark 10-year bond yield was last at 4.3215 percent .
Softer US Treasury yields should not be mistaken for emerging market asset and currency buoyancy, said Vishnu Varathan, head of Asia economics and strategy, Mizuho.
“Quite the opposite given the conspiracy of hawkish Fed and geo-political threat,” he said.
The US dollar index was last up 0.2 percent at 104.34, but “due for some near-term consolidation,” according to Barclays analysts.
In equities, the Philippine benchmark index skid 1.2 percent to its lowest level in nearly two months. Stocks in South Korea and Singapore dropped 1 percent and 0.5 percent , respectively.
In Indonesia, shares advanced 0.4 percent . The rupiah was last up 0.3 percent , hovering under the 15,900 mark against the dollar.
