SINGAPORE, Nov 22 — The Philippine peso and Malaysian ringgit led slides in emerging Asia on Friday, as most regional currencies headed for weekly losses after upbeat US  data reinforced expectations the Federal Reserve’s stimulus won’t be in place for much longer.

The Philippine peso hit a 10-week low, while the Malaysian ringgit slipped to its weakest in more than seven weeks on short-covering in the greenback.

The dollar firmed against a basket of major currencies, rising above 101 against the yen amid expectations the Fed will begin tapering around March 2014 or even sooner.

The yen was under further pressure as the Bank of Japan might add to its policy stimulus to achieve its 2 per cent inflation target.

By contrast, minutes from the Fed’s latest meeting indicated that officials could decide to start cutting its asset purchases at one of its next few meetings.

Sharpening this view was data showing the number of Americans filing new claims for unemployment benefits fell more than expected last week.

“Fed tapering will hit emerging countries harder,” said Jeong My-young, Samsung Futures research head in Seoul.

“There are growing concerns over Southeast Asia such as political jitters in Thailand,” Jeong added.

Most emerging Asian currencies were already on track to book weekly losses, led by the Indonesian rupiah.

So far this week, the Indonesian currency has lost 1 per cent against the dollar, Thomson Reuters data showed, on month-end dollar demand from local companies.

The Thai baht has fallen 0.7 per cent in the week amid concerns over the nation’s fiscal deficit and political uncertainty.

The peso was down 0.5 per cent, the Singapore dollar lost 0.4 per cent and the ringgit pulled back 0.3 per cent.

Philippine peso

The Philippine peso slid as much as 0.4 per cent to 43.930 per dollar, its weakest since Sept 13 on dollar demand linked to maturities of non-deliverable forwards (NDFs), traders said.

The peso recouped some of earlier losses as investors covered short positions before the weekend. The Philippine currency, however, is expected to remain vulnerable to more losses, traders said.

The daily chart suggests the peso may weaken to 44.081, the 61.8 per cent Fibonacci retracement of its appreciation between August and October, if it ends the session weaker than the 50 per cent levels of 43.875.

Ringgit

The ringgit fell 0.3 per cent to 3.2165 per US dollar, its lowest since Oct 3, weighed down by losses against the Singapore dollar.

Investors continued to cover short positions in the greenback against the ringgit, traders said.

Still, the Malaysian currency has chart support at a 100-day moving average of 3.2189. The ringgit has remained above this average since early October.

Won

The won edged up against the dollar on month-end demand from exporters.

Caution grew over intervention to stem the won’s strength as the South Korean currency hit 10.4669 to the yen, its strongest since September 2008.

Still, the won is expected to find support on demand from exporters, traders said.

“Exporters do not miss any chances to sell dollars on rallies,” said a senior foreign bank trader in Seoul.

Month-end corporate demand for the won could pick up next week, the trader added. — Reuters