(Adds text, updates prices)
By Devika Syamnath
Aug 10 (Reuters) - Most Asian currencies retreated against
the dollar on Friday, as slides in the Russian rouble and
Turkish lira combined with escalating global trade tensions to
knock sentiment toward emerging market assets.
Turkey's lira hit a new record low against the U.S. dollar
in early trade on Friday, as concerns over a widening rift with
the United States persisted after a Turkish delegation returned
from talks in Washington with no apparent solutions to the
Earlier, the rouble slid to its lowest level since late 2016
after Washington said it would impose fresh sanctions because it
had determined that Moscow had used a nerve agent against a
former Russian agent and his daughter in Britain, which the
The combined impact of these events spiked risk aversion,
hitting Asian stock and currency markets.
The Korean won weakened 0.8 percent, its worst
session in over four weeks. India's rupee also shrunk
0.4 percent on the day and 0.4 percent this week.
The Philippine peso broke a three-week rally to fall
0.3 percent this week and was 0.2 percent lower for the day.
This was despite its central bank making its biggest rate
hike in 10 years on Thursday and leaving the door open for
further policy tightening to fight high inflation despite
economic growth losing steam.
China's yuan fell 0.5 percent. It has weakened
4.8 percent to date.
"We suspect that the PBOC (People's Bank of China) will not
allow the renminbi to weaken a lot further. But further slowdown
in China's economy that we are forecasting, and any escalation
of the U.S.-China trade war, is still likely to put a bit more
downward pressure on the currencies of other EM Asian
economies," said Capital Economics in a note.
China's central bank took steps earlier this month to rein
in sharp declines in the yuan, raising reserve requirements for
forex settlements to 20 percent but outlook still remains dour
due to the ongoing retaliatory tariff war between U.S. and
The city-state's currency declined for its second
week in a row and fell 0.2 percent this week.
A DBS bank note said the rise of alternatives to Singapore
dollar (SGD) deposits with domestic banks will drive short-term
Singapore dollar rates higher in the coming months.
"In the coming weeks, the upcoming launch of the SGD-based
IG (investment-grade) corporate bond ETF (exchange-traded fund)
would be a marker for the state of SGD bond demand. With a
higher yield and relatively short duration, this product may
entice depositors to switch over," the note said.
The following table shows rates for Asian currencies against
the dollar at 0525 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 110.920 111.07 +0.14
Sing dlr 1.371 1.3676 -0.21
Taiwan dlr 30.655 30.626 -0.09
Korean won 1126.500 1117.2 -0.83
Baht 33.270 33.16 -0.33
Peso 53.157 53.006 -0.28
Rupiah 14435.000 14405 -0.21
Rupee 68.948 68.68 -0.40
Ringgit 4.079 4.074 -0.12
Yuan 6.854 6.8180 -0.52
Change so far in 2018
Currency Latest bid End 2017 Pct Move
Japan yen 110.920 112.67 +1.58
Sing dlr 1.371 1.3373 -2.42
Taiwan dlr 30.655 29.848 -2.63
Korean won 1126.500 1070.50 -4.97
Baht 33.270 32.58 -2.07
Peso 53.157 49.977 -5.98
Rupiah 14435.000 13565 -6.03
Rupee 68.948 63.87 -7.36
Ringgit 4.079 4.0440 -0.86
Yuan 6.854 6.5069 -5.06
(Reporting by Devika Syamnath in Bengaluru; Editing by Sam