Aug 9 (Reuters) - Most Asian currencies stumbled on Wednesday with the Korean won destined for its biggest fall in nearly eight weeks as North Korea warned it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam. The won was trading down 0.6 percent at 1134.8 at 0556 gmt. North Korea's reference to an attack on Guam followed after President Donald Trump said the U.S. would respond to threats from North Korea with "fire and fury". "We have been down this road before, until the fireworks happen it will remain in the headlines, but in the past the markets have faded these types of moves. I think we have to be really sensitive to both liquidity conditions and further headline risk over the next 24 hours," said Stephen Innes, senior trader at OANDA. "China basically buttresses the North Korea economy from top to bottom. We are going to have international pressures from the U.S. and all the developed-world leaders who see this escalating a bit too far. I think there is going to be pressure on China to make some serious economic sanctions towards North Korea until they give up the plot of military escalation." Amid these geopolitical tensions the greenback weakened against the yen which rose to levels unseen in about 8 weeks. The rupee and the Indonesian rupiah edged lower, as much as 0.3 percent and 0.1 percent respectively. Meanwhile, the yuan rose 0.2 percent to its highest since October 2016, and is headed for its third consecutive day of gains. China's annual producer price inflation held steady and consumer inflation slowed marginally in July as prices for key raw materials rose slightly. "We have to be careful in markets like today with one of the big trading centers on holiday. Liquidity is quite taxing in the market space right now amongst emerging markets. If you look at the typical depth of the market in August it has just been not too buoyant," Innes said. Singapore markets are closed for a national holiday. PHILIPPINE PESO The Philippine peso followed the downward trend in the broader market and fell by as much as 0.5 percent. The peso, on its third straight day in negative territory, is headed for its worst fall in nearly 8 weeks. The International Monetary Fund said the Philippine economy is likely to grow at 6.6 percent this year, down from the 6.8 percent growth forecast announced in February. The following table shows rates for Asian currencies against the dollar at 0529 GMT. CURRENCIES VS U.S. DOLLAR Change as at 0529 GMT : Currency Latest Previous Pct bid day Move Japan yen 109.960 110.3 +0.31 Taiwan dlr 30.220 30.201 -0.06 Korean won 1135.000 1125.1 -0.87 Baht 33.260 33.256 -0.01 Peso 50.670 50.44 -0.45 Rupiah 13327.000 13312 -0.11 Rupee 63.763 63.63 -0.22 Ringgit 4.286 4.284 -0.05 Yuan 6.693 6.7080 +0.23 Change so far in 2017 Currency Latest End 2016 Pct bid Move Japan yen 109.960 117.07 +6.47 Taiwan dlr 30.220 32.279 +6.81 Korean won 1135.000 1207.70 +6.41 Baht 33.260 35.80 +7.64 Peso 50.670 49.72 -1.87 Rupiah 13327.000 13470 +1.07 Rupee 63.763 67.92 +6.52 Ringgit 4.286 4.4845 +4.63 Yuan 6.693 6.9467 +3.79 (Reporting by Hanna Paul; Editing by)
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