Asian forex: Most Asian currencies fall

Most Asian currencies languished on Tuesday as the dollar rebounded further from a three-year low hit last week, and subdued risk sentiment kept regional assets in check. Against the yen, the dollar traded at 106.75 yen JPY=, up 0.15 percent for the day and bouncing back from its 15-month low of 105.545 set on Friday.
Ananlysts said the market would be watching out for several US Federal Reserve officials expected to speak publicly in the coming week and the Fed's release of its semi-annual monetary policy report to Congress. "We believe the dollar could stay relatively supported on dips against Asia ex-Japan currencies this week into the release of the report," said Christopher Wong, an FX strategist with Maybank.
Wong also said there was softer appetite for risk assets on the day. The Indian rupee shed more than a quarter percent on concerns over its widening trade deficit and the recent $1.77 billion Punjab National Bank fraud. India's trade deficit in January was the widest in more than 4-1/2 years as a surge in the country's oil and coal import bill outweighed a rise in exports, government data showed last week.
The South Korean won also fell as foreigners trimmed positions in local equity markets. The KOSPI index was down nearly 1 percent on the day. The Indonesian rupiah dropped as rising US Treasury yields narrowed gap with Indonesian bond yields. The Thai baht and Singapore dollar also fell on the day, while the Philippine peso bucked the trend and was up 0.19 percent. With more than 4 percent decline this year, the peso is the worst performer against the dollar in Asia.
Chang Wei Liang, an FX strategist with Mizuho Bank said the possible introduction of US tariffs on steel and aluminium imports also undermined regional currencies. "With the US now considering measures to curb steel and aluminium imports, we are mindful that the global synchronized expansion could face a new source of risk," Chang said.
Last week, US President Donald Trump said on Tuesday he was considering a range of options, including tariffs and quotas, to address steel and aluminium imports that he said were unfairly hurting US producers.