SINGAPORE: Most emerging Asian currencies edged up on Thursday as investors cut bearish bets amid some hopes of more economic stimulus from China after inflation data, while caution remained over the timing of a rate hike by the US Federal Reserve.
The South Korean won failed to ride the regional rebound, hitting a near five-week low against the dollar as offshore hedge funds chased the greenback for catch-up plays after local holidays.
The Philippine peso edged up as the central bank is expected to tighten monetary policy later in the day to stem inflation.
Malaysia's ringgit rose on exporters, even though it pared much of earlier gains after disappointing factory output data.
Chinese consumer inflation cooled more than expected in August, prompting some expectations of more economic stimulus.
Still, investors hesitated to add more bullish positions in emerging Asian currencies as the dollar broadly held onto gains.
The greenback hovered around a 14-month high against a basket of major currencies as investors stayed nervous about when the Federal Reserve might start increasing interest rates.
Asian stocks also fell after US President Barack Obama pledged to fight Islamic State militants.
"The dollar could strengthen further against Asian currencies," said Jeong My-young, Samsung Futures' research head in Seoul.
"But I doubt how further regional currencies would weaken as the dollar needs more solid data to gain further," Jeong said, adding the US currency is seen excessively bought.
RINGGIT
The ringgit gained on oil exporters' demand for settlements.
The Malaysian currency, however, pared earlier gains after data showed industrial production in July rose 0.5 percent from a year earlier, far below expectations of 4.3 percent growth.
WON
The won lost as much as 1.1 percent to 1,035.6 per dollar, its weakest since Aug. 8, reflecting depreciation in regional peers during South Korea's holidays.
Financial markets in Seoul were closed between Monday and Wednesday to mark Chuseok, the Full Moon Festival.
The won recovered some earlier losses as exporters bought the currency for settlements, traders said.
Against the yen, the won eased to 9.6819 from Wednesday's 9.6772, with caution growing over possible intervention by the foreign exchange authorities to stem the South Korean currency's strength against the Japanese unit.
On Tuesday, the won hit a six-year high of 9.6223 to the yen.
Exporters of the two countries compete in key overseas markets.
RUPIAH
The rupiah fell 0.2 percent to 11,835 per dollar, its weakest since Aug. 8, as most of Indonesia government's bond prices fell.
The official Jakarta Interbank Spot Dollar Rate (JISDOR), which the central bank launched last year in an effort to manage exchange rate fluctuations, was fixed at 11,831 rupiah per dollar, weaker than the previous session's 11,782.
On Wednesday, foreign investors sold a net 815.5 billion rupiah ($69 million) worth of stocks, the largest daily selling since Aug. 15.
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