Asian currencies flat, set for weekly losses

Asian currencies were set to end lower after a tumultuous week, while the prospect of additional US tariffs on Chinese goods kept trading muted on Friday. Following the expiry of the public comment period for threatened tariffs on $200 billion in Chinese goods, the Trump administration could begin to impose the tariffs at any moment, although how long actual implementation would take is not yet known. China has vowed to retaliate in kind.
Market participants were also awaiting jobs data from the United States later in the day for further clues to US monetary policy.
An uptick in the dollar, fuelled by safe-haven seeking participants, has weighed on regional currencies. The greenback traded sideways for the day.
"Asia ex Japan currencies are weak on two fronts. The three Asian currencies with current account and fiscal deficits- Indian rupee, the Indonesian rupiah and the Philippine peso
remain sensitive to rising US rates and emerging market stress, especially the Turkish lira and the Argentinian peso," DBS said in a research note.
A selloff in emerging markets, prompted by economic crises in Argentina and Turkey, as well as recession in South Africa, had battered Asian units through the week. The Indian rupee and the Indonesian rupiah were the worst afflicted, and were set to lose more than 1 percent each for the week.
The Indian rupee strengthened against the dollar on Friday after the central bank likely intervened in order to stabilise the falling currency, dealers said. The currency is the worst performer amongst its peers this year, and has ended at record lows for the past seven sessions.
The Chinese yuan led losses among its Asian peers, even after a stronger mid-point fixing by the People's Bank of China. Chinese shares were also lower as concerns over trade tariffs weighed.
The yuan was set to lose about 0.16 percent for the week.
Bearish bets on the Indian rupee and the Indonesian rupiah reached multi-year highs over the last two weeks, a Reuters poll showed. Worries over economic fundamentals in the two countries, particularly their fiscal and current account deficits, have prompted large outflows this year.
Bearish bets on the Philippine peso also rose. The Philippines also has a current and fiscal account deficit, which has prompted outflows.
Bearish bets on the Singapore dollar remained largely unchanged, while those in the Chinese yuan decreased marginally.