Philippine peso hits Nov 2022 lows, most Asian FX weak
Indonesia rupiah hits lowest since May 2
Most Asian equities in the red
U.S. 10-year yield hits multi-week peak
Updates at 0645 GMT
By Archishma Iyer
May 29 (Reuters) - Most emerging Asian currencies weakened on Wednesday, with the Philippine peso hitting a 1-1/2-year low, ashigher U.S. Treasury yields lifted the dollar, while investors were waryof a keyinflation reading that could drive global monetary policy.
The peso PHP= fell as much as 0.8% to 58.400 per dollar, its lowest since Nov. 8, 2022.
The peso has depreciated about 1.5% since the Philippine central bank's last meeting on May 16, when it signalled it could cut interest rates as early as August.
The Bangko Sentral ng Pilipinas (BSP) indicated last week that it will intervene in the foreign exchange market if necessary to stem any volatility.
"We stay cautious... being wary of upside risks given that any Fed easing may be slow as U.S. data may only gradually cool," Maybank analysts said in a note, adding that the BSP's dovish tilt is also not helping the peso.
The Indonesian rupiah IDR= fell as much as 0.5%, hitting its weakest since May 2, while the benchmark 10-year Treasury yield ID10YT=RR inched to a two-week high of 6.943%.
Other currencies such as the Singapore dollar SGD=, Malaysian ringgit MYR=, Taiwan dollar TWD=TP and Thai baht THB=TH traded between flat and down 0.4%.
The U.S. personalconsumption expenditures reading - the Federal Reserve's preferredgauge for inflation - will take centre-stage among investors, which is expected to steady on a monthly basis. The data will influence the Fed's interest rate path.
Markets are pricing in about a 45% chance of a 25 basis points rate cutin September, as compared with 49.4% a week ago, according to the CME FedWatch tool.
The dollar index =USD was at 104.60, above its two-week low, buoyed by a rise in the 10-year U.S. Treasury yield. The benchmark yield hit its highest since May 3. USD/ US/
"USD remains supported by a Fed caution to cut rates too early. Nevertheless, we continue to see USD as a sell on rally and think that the other stretched pairs such as USD/KRW or USD/TWD could be worth looking at," Maybank added.
Most Asian equities were trading lower as well. Shares in Seoul .KS11 ended down 1.7%, while markets in Jakarta .JKSE, Kuala Lumpur .KLSE, Manila .PSI and Bangkok .SETI fell between 0.3% and 1.6%.
The chip-heavy Taipei benchmark .TWII, which had hit multiple record highs in the recent past, took a breather during the day and closed down 0.9%.
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Asia stock indexes and currencies at 0645 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.01 | -10.23 | .N225 | -0.77 | 15.22 |
China | CNY=CFXS | -0.05 | -2.07 | .SSEC | 0.04 | 4.57 |
India | INR=IN | -0.18 | -0.14 | .NSEI | -0.69 | 4.60 |
Indonesia | IDR= | -0.48 | -4.75 | .JKSE | -1.64 | -1.90 |
Malaysia | MYR= | -0.17 | -2.34 | .KLSE | -0.39 | 10.64 |
Philippines | PHP= | -0.70 | -5.09 | .PSI | -1.14 | -0.36 |
S.Korea | KRW=KFTC | -0.48 | -5.64 | .KS11 | -1.67 | 0.83 |
Singapore | SGD= | +0.01 | -2.19 | .STI | -0.05 | 2.72 |
Taiwan | TWD=TP | -0.38 | -4.82 | .TWII | -0.90 | 20.81 |
Thailand | THB=TH | -0.20 | -6.79 | .SETI | -0.32 | -4.06 |
Reporting by Archishma Iyer in Bengaluru; Editing by Jacqueline Wong and Eileen Soreng
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