Most Asian currencies slid on Friday and posted weekly losses as data pointing towards an economic slowdown amped up selling, with Indonesia’s rupiah touching a two-year low.
A slew of US data in the past week included a weaker-than-expected growth in May consumer spending and inflation-adjusted consumer spending that saw a contraction.
“In general, growing concerns over US and global growth is keeping pressure on Asian currencies,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
A strong dollar also served as an additional headwind to Asian units, gaining 0.6 percent this week.
Thailand’s baht was the biggest decliner, losing 0.7 percent and was set for a 0.2 percent drop for the week.
The Indian rupee, with its 1 percent weekly loss so far, is set to be the region’s largest decliner for the week. The currency traded 0.2 percent lower and hit a fresh record low of 79.115 to the dollar on Friday.
The country – battling high inflation from soaring commodity prices – imposed export duties for some petroleum products while introducing a windfall tax and an obligation on oil exporters to sell to the domestic market the equivalent of 50 percent of what they sold to overseas customers.
However, the move is expected to have only a limited impact on inflation and serve more as a revenue source for the government in the short term, said GaurangSomaiya, an analyst at MotilalOswal. The rupee still shed 0.2 percent.
Earlier this year, Indonesia also briefly halted exports of palm oil and imposed domestic market obligations on suppliers in a bid to cool consumer price rise.
The country reported higher-than-expected annual inflation, but core inflation, which excludes some government-controlled and volatile prices, came in below market expectations.
