(April 24): Most Asian currencies were set on Friday for weekly losses, with the Philippine peso slipping to its weakest level in nearly four weeks and the Indonesian rupiah hovering near its record low, as stalled US–Iran peace talks supported the dollar.
Most stock markets in emerging Asia were headed for weekly gains after US President Donald Trump extended the ceasefire with Iran indefinitely, but stalled talks and the fragile truce gave investors little to cheer.
The MSCI gauge of EM Asia stocks inched higher on the day and was set for a third consecutive weekly gain. An MSCI gauge of global EM currencies inched lower to its lowest since April 13.
The Philippine peso weakened 0.5% to 60.755 per dollar, its lowest since late March. The currency has lost nearly 2% so far this week, facing its worst week in seven.
The Philippine central bank (BSP) raised its policy rate to 4.50% on Thursday to tame inflation.
“The (BSP) signalled for further rate hikes to counter inflation, this won’t provide much support for the PHP, amid the Middle East conflict, oil price shock, and markets expecting the Fed to keep rates high for longer,” MUFG analysts said in a note. “These factors need to turn for PHP to regain strength.”
In Indonesia, the rupiah firmed slightly before paring the gains, trading around 17,290 per dollar, not far from the record low of 17,320 touched on Thursday.
The rupiah has fallen around 0.6% this week, heading for its third consecutive week of losses and its worst since the week ended March 6.
Elsewhere, the Malaysian ringgit shed 0.3% to its lowest level since April 13. It was also tracking its worst week since March 23, having lost 0.5% so far.
The Thai baht slipped to 32.555 per dollar, its lowest level since April 7, and was poised for its worst week since March 16.
Among equities, those in Indonesia led declines, falling 2.4% to hit their lowest since April 9. The index has shed more than 5.5% this week, on track for its worst week since March 9.
Thai stocks fell 1.3% on the day, while stocks in Manila traded flat.
Stocks in Kuala Lumpur were largely unchanged on Friday but have risen by more than 1.5% so far this week. The index was on course for its best week since January 12.
The KOSPI index inched higher to a record high before erasing gains to trade 0.7% lower.
The index was on track for its third consecutive week of gains, riding on momentum in artificial intelligence.
Taiwan equities, on the other hand, doubled down on their early gains to hover around record highs. For the week, the benchmark index has risen over 5%, setting up its third consecutive week of gains.
Uploaded by Lam Seng Fatt
