Asian currencies weakened on Thursday as growing economic uncertainty pushed investors towards perceived safer havens, with the Philippine peso sliding to a more than two-week low, while South Korean shares led regional equities lower.
The MSCI gauge of global emerging market currencies declined 0.1%.
The Philippine peso depreciated 0.3% to 59.144 against the U.S. dollar, its weakest level since November 17. The currency is about 100 points short of its record low of 59.262, plumbed in late October.
The dollar index, which measures the U.S. currency against six rivals, edged higher to 98.986, setting itself on track to snap a nine-day losing streak.
“We do think that the dollar is currently appropriately priced,” said Lloyd Chan, a senior currency analyst at MUFG.
“In a quite uncertain world, investors could be continuing to unwind risk currencies that are perceived to be higher risk.”
The Philippine peso has fallen more than its peers, with its central bank cutting rates aggressively to support growth. The most recent cut was in October after a confidence-denting corruption scandal came to light, prompting the central bank to warn of further weakening.
In the U.S., while a quarter-point cut by the Federal Reserve is priced in for next Wednesday following its meeting, bond investors have raised concerns about Kevin Hassett as the potential new Fed chair, fearing he may aggressively lower rates to align with President Donald Trump’s preferences.
The Thai baht slipped 0.3%, and the rupiah and the Singapore dollar fell around 0.2% each. The Indian rupee extended losses to drop to 90.42 per dollar.
The South Korean won declined 0.5%, in tandem with stocks which were down 0.7% due to weakness in heavyweights Samsung Electronics and SK Hynix.
A report stating Microsoft was lowering its sales growth targets for certain artificial intelligence products dampened investor confidence in the sector. Microsoft later refuted the report.
Nomura analysts said investors will be looking for proof that AI investments lead to real productivity gains and better returns for the economy and major capital spenders in 2026.
The tech-heavy index in Taiwan dropped 0.4% while shares in Malaysia and Singapore fell around 0.3% each.
Thailand’s benchmark index was largely flat, whereas Indonesian equities rose 0.3%, around 40 points shy of an all-time high of 8,669.187.
HIGHLIGHTS:
** Flood-hit Indonesian regions run low on fuel, funds for relief effort
** Thai consumer confidence rises in November, survey shows
** China likely to chase 5% GDP growth in 2026 in bid to end deflation – Reuters
