BENGALURU: Asian currencies weakened on Wednesday as the US dollar firmed, while technology stocks in South Korea and Taiwan extended their recovery from a sharp selloff last week that left both markets nursing steep losses.
The dollar hovered near a two-week high in early Asian trade after data overnight showed US core inflation rose 0.3 percent in October from the previous month.
The reading matched a pace that Federal Reserve Governor Christopher Waller has said would be compatible with a 50-basis-point interest rate increase.
Comments from voting members of the central bank’s rate-setting committee signalling continued concern over elevated inflation further bolstered expectations for additional rate hikes.
The benchmark two-year Treasury yield, which is particularly sensitive to interest-rate expectations, climbed overnight to its highest level since October 28.
Higher US yields and a firmer dollar weighed on Asian currencies as investors reassessed the appeal of emerging-market assets.
The Thai baht lost 0.5 percent, while the Malaysian ringgit weakened to 4.073 per US dollar, its lowest level in a week.
Meanwhile, technology-heavy stock markets in South Korea and Taiwan
extended gains, building on a rebound from a recent AI-led selloff after strong earnings from CoreWeave helped reassure investors about demand for AI infrastructure.