(Adds text, updates prices)
By Susan Mathew
Aug 18 (Reuters) - Most Asian currencies were subdued on
Friday, while the Philippines peso hit a fresh 11-year low, as
markets shied away from riskier assets amid rising doubts about
U.S. President Donald Trump's ability to push through his
economic agenda.
Investors fretted over the implications for Trump's plans
for tax cuts and infrastructure spending after the president
disbanded two high-profile business advisory councils on
Wednesday. That action came after several chief executives quit
in protest over Trump's remarks on violence in Virginia.
Most of the regional currencies traded flat, with the
exception of the South Korean won which fell as much
0.6 percent, and the Philippine peso lost upto 0.5
percent for its tenth straight session of losses.
On the week, though, the won gained 0.2 percent, snapping
three weeks of losses.
"I think a large part of it is still the risk appetite not
returning, there is very cautious trading," said Christy Tan,
head of markets strategy, National Australia Bank in Hong Kong
Ahead of the weekend, investors are also wary of the risk of
a flare-up in tensions in the Korean peninsula," Tan said,
adding "so that is still keeping everyone on the defensive."
The Taiwan dollar declined 0.1 percent ahead of
revised second quarter gross domestic product numbers due out
later in the session, while the Chinese yuan fell
0.05 percent.
The Malaysian ringgit was marginally lower, largely
shrugging off data showing the economy grew at a faster than
expected pace in the second quarter.
On the other hand, the Thai baht and the Singapore
dollar edged up, adding 0.1 percent each.
PHILIPPINE PESO
The Philippine peso fell to another 11-year low on Friday,
its third time this week, having only briefly pulled ahead in
the previous session when data showed economic growth quickened
at a solid pace in the second quarter.
"While we saw positive GDP, the general confidence regarding
the Philippines is still quite soft given that the trade
performance has been very disappointing, and that is something
everyone is more focused on and it's not helping the peso in any
way," Tan said.
A government-driven infrastructure drive has seen a surge in
capital goods imports, and accounted for a sizable reason for a
trade deficit of $13.2 billion in the first half of the year.
That puts the nation on track for its first annual current
account deficit in 15 years - an unfavourable state of affairs
for the peso especially as traders worry about how the gap would
be funded if foreign investment doesn't keep pace.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0520 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.340 109.56 +0.20
Sing dlr 1.365 1.3663 +0.13
Taiwan dlr 30.341 30.312 -0.10
Korean won 1140.800 1137.2 -0.32
Baht 33.220 33.25 +0.09
Peso 51.460 51.355 -0.20
Rupiah 13362.000 13377 +0.11
Rupee 64.108 64.15 +0.07
Ringgit 4.295 4.294 -0.01
Yuan 6.677 6.6735 -0.05
Change so far in 2017
Currency Latest bid End 2016 Pct Move
Japan yen 109.340 117.07 +7.07
Sing dlr 1.365 1.4490 +6.19
Taiwan dlr 30.341 32.279 +6.39
Korean won 1140.800 1207.70 +5.86
Baht 33.220 35.80 +7.77
Peso 51.460 49.72 -3.38
Rupiah 13362.000 13470 +0.81
Rupee 64.108 67.92 +5.95
Ringgit 4.295 4.4845 +4.42
Yuan 6.677 6.9467 +4.04
(Reporting by Susan Mathew in Bengaluru; Editing by Shri
Navaratnam)
Our Standards: The Thomson Reuters Trust Principles.