Most Asian currencies eased against the dollar on Monday, as data showed China's economy slowed at the end of last year, underlining the need for more stimulus amid the months-long Sino-US trade war. The world's second-largest economy grew 6.4 percent in the fourth quarter from a year earlier, slowing to a pace last seen in early 2009 during the global financial crisis and stoking concerns over the global economy.
The Chinese yuan hardly reacted to the GDP data and was trading down 0.1 percent. But, OCBC Bank said in a note that the risk appetite levels for Asian forex would be constrained for the near term by the "overhang" from a global macro deceleration.
The dollar hovered near a two-week high against a basket of currencies, supported by a sustained recovery in investor risk appetite which nudged US bond yields higher. The dollar index, which measures its strength against six major currencies, was steady at 96.315 after climbing to 96.394 percent on Friday, its strongest since Jan. 4.
Among Asian currences, the Korean won led declines, easing as much as 0.6 percent to 1,128.10 against the dollar, its weakest in two weeks, after data showed the country's exports were set to decline for a second straight month. The Indian rupee fell as much as 0.5 percent to 71.52 against the dollar, its weakest in more than a month, while the Indonesian rupiah shed up to 0.4 percent to 14,220 per dollar, both impacted by the rising cost of importing oil.
Crude prices rose to their highest for 2019 after data showed refinery processing in China, the world's second-largest oil consumer, climbed to a record in 2018, despite a slowing economy last year. Prices are further being supported by supply cuts led by the Organization of the Petroleum Exporting Countries (Opec), analysts said. The Philippine peso weakened for a fourth straight session, losing 0.4 percent.
The Thai baht eased as much as 0.2 percent after the country's customs-cleared exports dropped for a second straight month in December, as against analysts' forecast for a small rise. Malaysian markets were closed on Monday for a holiday.