Most emerging Asian currencies fell against a firm dollar after resilient US data, with the Indonesian rupiah and Malaysian ringgit leading losses while the Japanese yen swung wildly.
The US economy grew faster than expected in the second quarter, aided by a strong labor market and consumer spending, which raised prospects of a potential pause in rate hikes by the Federal Reserve.
Risk sentiment took a hit, which led the dollar index which measures the strength of the greenback against six major rivals to perch at 101.76.
The rupiah led the losses, dropping around 0.6 percent , to trade at 15,090 per dollar, while the ringgit slipped around 0.6 percent .
Other currencies like the Philippines peso Singapore dollar and the Indian rupee traded between flat and a 0.4 percent drop.
Separately, the Japanese yen see-sawed to jump as much as 1 percent after an initial drop of 1.2 percent as the Bank of Japan reiterated its ultra-low accommodative policy but flagged more steps to make its yield curve control policy more flexible.
The currency is down about 0.1 percent.
“Today’s adjustment is a step toward an orderly exit from the yield curve control, which we anticipate should happen within the next year,” Tom Kenny, the senior international economist at ANZ said in a research note.
The choppy Japanese unit rose as much as 1 percent against the Singapore dollar poised for its best day since mid-June and logging gains for the fifth straight session. The yen advanced as much as 1.5 percent against the ringgit which is set for its best day since July 7.
This central bank meeting is the last for the week, after the US Federal Reserve and the European Central Bank raised rates by 25 basis points respectively earlier, even as they struck moderate tones for any further raises.
Asian equities were mixed with shares in Kuala Lumpur Singapore and Taipei gaining between 0.1 percent and 0.9 percent .
Meanwhile, stocks in Manila and Jakarta traded lower at 0.3 percent and 0.2 percent , respectively.
Besides, shares on the Shanghai Stock Exchange were set to mark their best week since November as a potential stimulus package from China lifted mood. -Reuters
