SINGAPORE: Asian currencies slipped on Thursday as investors booked profits after a recent rally, while the won fell as South Korea's weak second-quarter growth bolstered expectations for an interest rate cut.
The won fell 0.5 percent to 1,028.6 versus the dollar , snapping a three-day winning streak.
South Korea offered billions of dollars in stimulus spending on Thursday to shore up domestic demand after Asia's fourth-largest economy grew at its weakest pace in more than a year in the second quarter.
The Indonesian rupiah slipped 0.6 percent to 11,565 versus the dollar, down from a two-month high of 11,475 set on Wednesday, according to Thomson Reuters data.
The rupiah retreated due to dollar-buying by local players and corporate demand for the greenback, traders said.
The rupiah had rallied on Wednesday, the day after Joko "Jokowi" Widodo was declared the winner of Indonesia's presidential election.
The Malaysian ringgit also faltered on Thursday, slipping 0.2 percent to 3.1735.
The generally weak tone in Asian currencies was probably caused by profit-taking, a trader for a Malaysian bank in Kuala Lumpur said.
The Thai baht retreated 0.1 percent to 31.82 versus the dollar, pulling back from an eight-month high of 31.75 set this week.
"There have been enhanced portfolio inflows into Thailand this week," said Saktiandi Supaat, head of FX research at Maybank. These follow "a relative period of stability under the current junta's control" and reflect expectations there will be a pick-up in infrastructure spending, he said.
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