Most emerging Asian currencies slipped against the dollar on Friday after weak China data rekindled concerns about its slowing economy amid the backdrop of unresolved Sino-US trade tensions. China's November retail sales grew at the weakest pace since 2003 and industrial output rose by the least in nearly three years as domestic demand softened further. This underlined rising risks to the economy.
"Chinese numbers were obviously not actually inspiring. People are still concerned about the growth story," said Dominic Schnider, head of commodities and APAC forex at UBS Wealth Management in Hong Kong. "With the Korean won leading the declines, it tells you that the more growth sensitive currencies are getting most of the beating."
The dollar firmed against most major counterparts. The Korean won weakened 0.7 percent and was on track to decline 1 percent this week. The Chinese yuan was marginally lower against the dollar and poised for a 0.2 percent weekly loss.
"Chinese renminbi will always be well managed. There is no interest from the government to weaken the currency unless there is a big dollar movement," added Schnider. The Indian rupee was slightly softer ahead of a central bank board meeting on Friday. It was on track for a second week of heavy losses.
The board meeting would be the first for Reserve Bank of India's new governor, Shaktikanta Das, as investors wait to see how central bank policy might evolve. The Indonesian rupiah was the day's second biggest loser against the dollar, while the Thai baht, Singapore dollar and Malaysian ringgit were marginally lower.
The peso, which declined 0.2 percent against the dollar on Friday, was on track for marginal losses this week. The central bank left its benchmark interest rate on hold at 4.75 percent on Thursday after five straight hikes as the country's inflation rate cooled.
Easing fuel and food prices should cool inflation further, the central bank said, and bring the average rate in 2019 and 2020 to 3.18 percent and 3.04 percent. Some analysts expect the rate-hiking to be over and the bank's next move to probably be a rate cut next year.
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