BENGALURU: Most Asian currencies declined on Friday, despite a fall in the dollar and US bond yields, after hawkish comments by some Federal Reserve officials tempered expectations of impending US rate cuts and dented risk sentiment.
Almost all Asian currencies were set for weekly declines as the dollar strengthened due to resilient US economic data.
On Friday, the South Korean won, which eased 0.5%, was the region’s top laggard. The Thai baht declined 0.3%, standing at its lowest level since Oct. 10.
The Philippine peso fell 0.4%, touching a five-month low.
Earlier on Friday, data showed Philippine annual inflation came in at 3.7% in March due to higher food prices, within the central bank’s 3.4% to 4.2% forecast for the month.
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. A Reuters poll suggests the BSP will keep its key rates on hold until at least the third quarter.
A slide in US Treasury yields on Thursday did not lift assets in Asia, as several Fed officials struck a cautious tone on easing monetary policy.
