* Asian FX hit multi-month lows * Peso, Taiwan dollar lead regional currency rout * India faces 25% tariffs, S.Korea secures deal By Roushni Nair July 31 (Reuters) – Asian currencies fell sharply on Thursday, with the Philippine peso and Taiwan dollar leading the decline as regional economies scrambled to secure U.S. trade deals ahead of President Donald Trump’s August 1 tariff deadline. The U.S. dollar soared after the Federal Reserve held interest rates steady overnight as expected, but offered less dovish commentary than markets had hoped, adding pressure on regional currencies already strained by trade uncertainty. The peso slipped nearly 1% to a five-month low of 58.371 per dollar and was on track for its worst month since October. The Taiwan dollar fell 0.8% to its lowest since June 10, declining for six straight sessions. Indonesia’s rupiah dropped 0.5% to a one-month low, while Malaysia’s ringgit lost 0.6% in its fifth consecutive day of losses. The MSCI emerging market currency gauge was set to snap a six-month rally, losing over 1% in July. It fell 0.3% on Thursday. Trade negotiations intensified as the August 1 deadline approached. Trump said on Wednesday South Korea secured a deal with reduced 15% tariffs, down from a threatened 25%. The agreement came amid a flurry of last-minute negotiations. Vietnam, Indonesia, the Philippines, Japan, Cambodia and Thailand have already clinched agreements, creating urgency for remaining economies. Malaysia’s prime minister said he expects to learn the country’s tariff rate on Friday after speaking with Trump. India is still negotiating with Trump after threats of 25% tariffs starting on Friday. The Indian rupee fell 0.4% to a five-month low with suspected central bank intervention to arrest the decline, while Mumbai stocks dropped 0.7%. Currencies including the rupiah, peso, and the Vietnamese dong are likely to remain under pressure from elevated tariff risks, said Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp. The Thai baht and ringgit face uncertainty due to unclear trade developments, with significant volatility expected, he said. Regional equities traded lower, with Manila shares falling 0.8% and Kuala Lumpur and Jakarta each losing over 0.4%. A gauge of emerging Asian equities slipped nearly 1%, but was on track for a monthly gain of over 2%. The weakness in currencies followed policy decisions by major regional central banks, with the Bank of Japan standing pat on Thursday and Singapore’s central bank holding rates on Wednesday, limiting policy support for currencies facing dollar strength and trade uncertainty. HIGHLIGHTS: ** South Korea finance minister says no discussion on FX in US trade talks ** South Korea court grants arrest warrant for ex-President Yoon, media reports ** China holds meeting with Thailand, Cambodia over border dispute Asian stocks and currenc ies as of 0449 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan +0.38 +5.5 <.N2 0.85 4.31 4 25> China 8 EC> India -0.25 -2.3 <.NS -0.79 4.28 1 EI> Indones -0.46 -2.2 <.JK -0.36 6.26 ia 5 SE> Malaysi -0.40 +5.0 <.KL -0.42 -7.57 a 8 SE> Philipp -0.85 -0.4 <.PS -0.75 -3.95 ines 3 I> S.Korea 7 11> Singapo +0.16 +5.4 <.ST -0.57 10.77 re 6 I> Taiwan -0.74 +9.4 <.TW 0.21 2.07 9 II> Thailan +0.00 +4.8 <.SE -0.18 -11.3 d 9 TI> 1 (Reporting by Roushni Nair in Bengaluru; Editing by Subhranshu Sahu)
