Asian currencies fell on Monday as strong US job market data lifted the dollar, while worries about the North Korean nuclear crisis emerged again as a drag on the South Korean won. Early won weakness was partly attributable to concerns North Korea may be preparing for a nuclear weapons test, but the currency found some support from dollar sales by exporters and foreign investment in South Korean shares. The won fell as much as 0.55 percent to a low of 1,003.5 per dollar, wiping out the gains from three consecutive up sessions, while the peso fell 0.15 percent to 54.110 per dollar after news law-makers had agreed on tax reform to boost government revenues.
"On North Korea, no ease in threats is another excuse in a dollar-bid environment to unwind some of the dollar/won shorts in the market. I don't think it is a major driver, but could easily become it," said Craig Chan, a currency strategist at the Royal Bank of Scotland in Hong Kong.
The United States said on Saturday it had a "robust" ability to deter North Korea, a day after a US defence official in Washington said North Korea could be preparing for an underground nuclear test.
The Philippine peso showed little reaction after law-makers agreed to give the president power to raise the rate of value added tax to 12 percent from 10 percent next year.
Analysts said the agreement failed to boost the peso because it came later than initially expected and a deal had already been priced in.
"It's a long-term issue. This has been played on too long," said James Malcolm, a currency analyst with Deutsche Bank. "It's been a theme for the last few weeks... There's no more juice in it."
The government also confirmed plans to raise as much as $750 million by selling more of its existing 2015 and 2030 bonds.
The dollar broadly strengthened after data on Friday showed that US non-farm payrolls rose 274,000 in April, well above economists' forecasts for a rise of 170,000. The previous two months' figures were revised higher.
The Singapore dollar and Taiwan dollar fell as much as 0.3 percent and the Indian rupee slid as much as 0.25 percent compared with late Friday.
The data underlined expectations the US Federal Reserve would continue raising interest rates, and could even increase the size of its rate rises.
The yen weakened 0.58 percent against the US dollar from late Friday.
China's silence over the weekend about its currency policy slightly eased speculation of an immediate yuan revaluation, but non-deliverable forward contracts showed the speculation has not disappeared.
The one-month yuan premium factored in a 0.9 percent appreciation, versus a record-high 1.5 percent last week, while the three-month contract suggested a 2.2 percent appreciation versus 2.7 percent last week.
The Taiwan dollar fell in early trade on Monday on positive US jobs data, though lingering expectations of a possible revaluation in the Chinese currency provided some support, dealers said.
The Taiwan dollar weakened to T$31.215 to the US dollar from Friday's close of T$31.160. The Taiwan unit had opened at T$31.267.
Volume rose to US$153 million after an hour and 15 minutes of trade, from US$140 million on Friday, on the main Taipei Forex Inc.
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