* Korean won strengthens most, set for weekly gain
* Peso up despite lower-than-expected annual inflation in
Sept
* India cuts interest rates by 25 bps, rupee little changed
(Adds text, updates prices)
By Devika Syamnath
Oct 4 (Reuters) - Asian currencies strengthened against the
dollar on Friday, with South Korea's won leading the pack, as
bets increased that the U.S. Federal Reserve would cut rates
further after a host of weak data deepened fears of a slowdown.
The market's focus now shifts to a key U.S. jobs report due
later in the day, and any signs of weakness in the print will
boost rate-cut expectations and pressure the greenback.
"Slightly lower dollar, some adjustments in market
positioning ahead of the weekend and expectations of Fed rate
cuts are supporting Asian currencies," said Irene Cheung, a
senior strategist for Asia at ANZ Banking Group (Singapore).
"With markets already fully loaded for an October FOMC
(Federal Open Market Committee) rate cut, it may require an
outsized positive surprise from the NFP (non-farm payroll)
numbers to shake out the very short-term dollar bears," OCBC
said in a note.
Thailand's baht THB=TH , Asia's best performing currency so
far this year, added 0.3% for the day and was set to close the
week 0.5% higher.
The Philippine peso PHP= was 0.2% higher as investors
shrugged off data showing September inflation came in at its
slowest in more than 3 years. Malaysia's ringgit MYR= cut earlier gains to trade
slightly higher after a surprise fall in August exports.
India's rupee INR=IN gained marginally, showing little
reaction to a 25 basis point rate cut that was in line with
expectations. OF RESPITE FOR WON
The Korean won KRW=KFTC outperformed Asian peers to notch
up a 0.8% gain, after having declined for three out of four
sessions this week.
Japanese Prime Minister Shinzo Abe on Friday maintained an
offer to talk to North Korea's leader even though missile
launches by the country earlier this week had upped the risk
ante in the region and pressured the won. A bitter feud with Japan over history, trade and territory
has added to the fallout from the U.S.-Sino trade war to pull
down the trade-sensitive won, making it Asia's worst performing
currency so far this year. The unit was set to close the week 0.5% stronger.
The following table shows rates for Asian currencies against
the dollar at 0641 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 106.790 106.9 +0.10
Sing dlr 1.380 1.3807 +0.09
Taiwan dlr 30.935 31.064 +0.42
Korean won 1196.800 1206 +0.77
Baht 30.460 30.55 +0.30
Peso 51.640 51.75 +0.21
Rupiah 14133.000 14170 +0.26
Rupee 70.860 70.88 +0.03
Ringgit 4.183 4.186 +0.07
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.790 109.56 +2.59
Sing dlr 1.380 1.3627 -1.22
Taiwan dlr 30.935 30.733 -0.65
Korean won 1196.800 1115.70 -6.78
Baht 30.460 32.55 +6.86
Peso 51.640 52.47 +1.61
Rupiah 14133.000 14375 +1.71
Rupee 70.860 69.77 -1.54
Ringgit 4.183 4.1300 -1.27