Most Asian currencies subdued

Most Asian currencies traded sideways on Thursday after cautious comments from a top US trade official spoiled hopes of a speedy end to the protracted US-China trade dispute, while dismal Chinese factory activity data added to investor worries. US Trade Representative Robert Lighthizer said on Wednesday it was too early to predict an outcome to the trade talks adding the United States will need to maintain the threat of tariffs on Chinese goods for years even if Washington and Beijing strike a deal to end a costly tariff war.
Leading declines in the region, the Thai baht weakened about 0.3 percent and was poised for its worst February since 2009, faltering about 0.9 percent this month.
"Declining attractiveness of local government bonds and political risk premiums also impart additional negative baggage for the baht," OCBC Bank said in a note to clients.
Political uncertainty prevails in Thailand with national elections due on March 24, which could see an end to the military junta rule.
Further marring risk sentiment in Asia, China's manufacturing activity contracted to a three-year low in February as export orders fell at the fastest pace since the global financial crisis.
The dismal China data reinforces fears that the world's second-largest economy continues to cool. The official Purchasing Managers' Index fell to 49.2 in February, pointing to activity shrinking for a third straight month.
The Indonesian rupiah eased 0.2 percent against the dollar and was on track to decline 0.7 percent in February, while the Malaysian ringgit was marginally down.
The Singapore dollar and the South Korean won treaded water, while the Philippine peso saw marginal gains.
Meanwhile, the Bank of Korea held interest rates steady on Thursday, as policymakers shifted their focus to supporting the economy facing increasing pressure from falling exports and slowing global growth.
The rupee edged up slightly after falling the previous day on India-Pakistan border tensions.
World powers urged restraint as tensions between the nuclear-armed neighbours mounted following tit-for-tat air strikes that downed enemy jets, with Pakistan capturing an Indian pilot.
Investors also awaited India's GDP data for the October-December quarter due later in the day. A Reuters poll showed that India's economy likely grew at its slowest pace in over a year for the quarter, as weaker rural incomes and softer urban demand weighed on consumption.