Most Asian currencies fell on Friday, dragged down by uncertainty over the Ukraine crisis and worries of a recession following weak data from around the region.
The Thai baht led losses in the region with a 0.3 percent drop, after three straight sessions of gains, and the Malaysian ringgit fell 0.1 percent.
Worries over the global outlook dominated markets on Friday, with Russia threatening to halt gas supplies to Europe unless they are paid in roubles and as data showed factory activity in Asia slowed over March.
An outlier was the Philippine peso which strengthened 0.3 percent, and was set to end the week 1 percent higher at 51.575 to the dollar.
“Recent comments on policy normalisation by BangkoSentral ng Pilipinas Governor Benjamin Diokno as well as a bearish turn in oil look to be supporting PHP sentiments,” analysts at Maybank said in a note.
According to media reports, Philippines’ central bank chief said the central bank plans to begin increasing interest rates in the second half of the year, and rates might reach 2.75 percent by next year.
Philippine stocks tumbled 1.2 percent.
However, many currencies in the region were set to end the week higher, as sentiment earlier in the week was boosted by signs of progress to Russia-Ukraine peace talks. The baht was set to post for a weekly gain of 0.7 percent, and the Singapore dollar gaining 0.2 percent.
“Economic data in coming months will likely point to a growth slowdown,” analysts at Nomura warned in a note.
Indonesia reported consumer price index rose to a two-year high in March, over expectations but within the central bank’s target range.
“We believe both headline and core inflation (in Indonesia) will heat up considerably in the near term and we can expect the central bank to be on alert,” analysts at ING said, adding that a pickup in inflation in the second quarter may push the central bank to hike rates. – Reuters
