Most emerging Asian currencies slipped on Thursday as the dollar held steady near a four-week high against the yen ahead of the US consumer inflation data later in the day. Nath Wongsaroj, corporate treasury trader at Mizuho Bank, said Asian markets were quiet and Asian FX fell on a bullish dollar, boosted by US Treasury bond yields that rose to 2.18 percent.
The dollar, which slid to a 10-month low last week, stood tall, lifted as US Treasury yields climbed to a 2-1/2-week highs. A near-term focus is the US inflation data that will be important to the US Federal Reserve as it considers the timing of its next rate rise. Expectations for the Fed to hike rates again in 2017 have waned amid sluggish US inflation.
In Asian currencies, the Korean won led Thursday's falls, down as much as 0.4 percent to a one-week low. The Philippine peso posted its biggest intraday percentage fall in almost four weeks, while Indonesia's rupiah declined 0.3 percent. The Indian rupee also lost as much as 0.3 percent, hitting its lowest point since September 6.
China's yuan was little changed by data that showed the country's factory output grew 6.0 percent in August from a year earlier, less than forecasts. The South Korean won edged lower early on Thursday, the expiration day for Seoul stock options and futures. The won was quoted at 1,133 against the dollar, down 0.4 percent compared with Wednesday's close of 1,128.5.
China's yuan traded flat on Thursday, before inching down slightly in early trade. Data released in the day showed China's factory output grew 6.0 percent in August from a year earlier, while fixed-asset investment expanded 7.8 percent in the first eight months, both well below economists' forecasts. Prior to market opening, China's central bank lowered its official yuan midpoint for a third consecutive day, to 6.5465 per dollar, the weakest level since September 4.
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