* MOst currencies up slightly, but still down on week
* Philippine peso strengthens up to 0.6%
* Malaysian cenbank announces liberalisation of FEA policy
*
(Adds text, updates prices)
By Aby Jose Koilparambil
Aug 16 (Reuters) - Most Asian currencies rose modestly on
Friday as anxiety over a global recession eased a little, thanks
to strong U.S. retail sales data, though that couldn't prevent
weekly losses as riskier assets barely recovered from a hefty
sell-off.
U.S. stocks bounced overnight and supported some of the
Asian bourses after data showed American consumers continued to
splurge in July. Overall confidence in financial markets
remained fragile, even though signs China might offer more
stimulus to support its economy appeared to calm nerves.
Risk sentiment worsened midweek as an inversion in the U.S.
Treasury yield curve raised fears of a recession there, with
several major economies including China and Germany already
under the pump.
That explains the limited gains for regional currencies on
the day as Sino-U.S. trade tensions remained high, even after
Washington delayed tariffs on some Chinese imports earlier in
the week.
Beijing has also vowed to retaliate with more duties on U.S.
imports a day after President Donald Trump linked peaceful
handling of Hong Kong civil unrest to a trade deal with China.
"There is pressure on Asian currencies given this environment
where we have negative news on the trade front alongside poor
Asia data, and for these currencies to gain ground, we need to
have some real improvement in U.S.-China trade developments,"
said Irene Cheung, senior Asia strategist at ANZ Banking Group
(Singapore).
The Philippine peso PHP= rose 0.6%, while the Indonesian
rupiah IDR=ID strengthened as much as 0.3%, but both
currencies were poised for weekly losses of 0.8% and 0.3%,
respectively.
The Singapore dollar SGD= and the Taiwan dollar TWD=TP
gained up to 0.2% each, and the two were also set to post slight
weekly losses.
The Indian rupee INR=IN and the South Korean won
KRW=KFTC gained slightly, while the Chinese yuan CNY=CFXS
edged lower.
MALAYSIAN RINGITT
The Malaysian ringgit MYR=MY rose 0.4% and is set to post
0.2% gain for the week
The Malaysian central bank announced further liberalisation
of its foreign exchange administration (FEA) policy, saying it
would provide businesses with greater flexibility in managing
their foreign exchange risks and daily operations. The measures do not take effect until the end of August, and
there was no reaction in the thinly traded onshore ringgit
MYR= . But offshore non-deliverable forwards MYRNDFOR= , which
most overseas investors use to hedge risks, saw the value of
ringgit in forwards rise in anticipation of less pressure in the
offshore segment.
The one-year NDFs MYR1YNDFOR= fell to 4.955 per dollar
from Thursday's highs of 4.2655 per dollar. The spot ringgit is
expected to weaken when the measures take effect on Aug. 30, in
anticipation that more hedging of foreigners' ringgit
liabilities will move onshore.
The measures come in the wake of FTSE Russel's review,
announced in April, of Malaysia's market accessibility level in
its World Government Bond Index due to concerns about liquidity.
Earlier in the day, data showed Malaysia's economy grew
faster-than-expected in April-June, making it the first
Southeast Asian nation to report an acceleration in growth from
the previous quarter, driven by stronger consumer spending and
palm oil production. CURRENCIES VS U.S. DOLLAR
Change on the day at 0605 GMT
Currency Latest bid Previous day Pct Move
Japan yen 106.070 106.11 +0.04
Sing dlr 1.386 1.3888 +0.17
Taiwan dlr 31.348 31.405 +0.18
Korean won 1210.700 1212.7 +0.17
Baht 30.900 30.86 -0.13
Peso 52.430 52.763 +0.64
Rupiah 14225.000 14260 +0.25
Rupee 71.233 71.27 +0.05
Ringgit 4.176 4.192 +0.38
Yuan 7.037 7.0333 -0.06
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.070 109.56 +3.29
Sing dlr 1.386 1.3627 -1.71
Taiwan dlr 31.348 30.733 -1.96
Korean won 1210.700 1115.70 -7.85
Baht 30.900 32.55 +5.34
Peso 52.430 52.47 +0.08
Rupiah 14225.000 14375 +1.05
Rupee 71.233 69.77 -2.05
Ringgit 4.176 4.1300 -1.10
Yuan 7.037 6.8730 -2.34