BENGALURU: Asian currencies weakened on Thursday as the dollar firmed after nine straight days of declines, with the Philippine peso pared some losses after hitting its weakest level in more than two weeks.
The Philippine peso depreciated as much as 0.4 percent to 59.172 against the US dollar, later cutting losses to last trade down 0.1 percent.
The dollar index, which measures the US currency against six rivals, edged higher to 98.95. The greenback was steady near a five-week low as weak data in the United States solidified the chances of a Federal Reserve rate cut next Wednesday.
“We do think that the dollar is currently appropriately priced,” said Lloyd Chan, a senior currency analyst at MUFG. “In a quite uncertain world, investors could be continuing to unwind risk currencies that are perceived to be higher risk.”
The Philippine peso is one of Asia’s worst performers, down 1.6 percent this year as aggressive central bank rate cuts weighed on the currency. The most recent cut was in October after a confidence-denting corruption scandal came to light, prompting the central bank to warn of further weakening.
In the US, while a quarter-point Fed cut is priced in for next week, bond investors have raised concerns about Kevin Hassett as the potential new Fed chair, fearing he may aggressively lower rates to align with President Donald Trump’s preferences.
The Thai baht slipped 0.4 percent, tracking a dip in bullion as investors booked profits and turned cautious ahead of the Fed meeting.
The rupiah and the Singapore dollar fell around 0.2 percent each. The Indian rupee dropped to a historic low of 90.42 per dollar earlier in the session but was last seen inching 0.1 percent higher.
The South Korean won declined 0.4 percent, in tandem with stocks, which were down 0.2 percent due to weakness in heavyweight SK Hynix.
A report stating Microsoft was lowering its sales growth targets for certain artificial intelligence products dampened investor confidence in the sector. Microsoft later denied the report.
Nomura analysts said investors will be looking for proof that AI investments lead to real productivity gains and better returns for the economy and major capital spenders in 2026.
Singapore shares fell 0.4 percent after a six-day rally that had lifted the benchmark 1.5 percent.
Indices in Taiwan, Indonesia and Thailand were largely unchanged. Malaysian stocks slipped 0.3 percent.
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