Asian currencies fall to multi-month lows against dollar; markets show mixed performance

Asian currencies in focus: Several Asian currencies experienced major declines on Wednesday, with regional stock markets displaying mixed trends. Traders sought refuge in the safe-haven US dollar following robust economic data from the United States.

The South Korean won, one of the weakest performers among Asian currencies this year, dropped 0.5 per cent to its lowest level since November 2.

Similarly, the Taiwanese dollar fell 0.3 per cent, reaching its lowest point since November 16. 

Indonesia's rupiah also depreciated by 0.4 per cent, hitting its lowest level in nearly five months.

Meanwhile, the US dollar strengthened by 0.1 per cent against a basket of major currencies, reaching 104.38. 

The surge was driven by better-than-expected orders for long-lasting US manufactured goods and concerns over potential inflationary pressures that could prompt a revision in the Federal Reserve's interest rate strategy.

The Hang Seng Index in Hong Kong and mainland Chinese blue-chip stocks both experienced declines of 0.7 per cent and 0.5 per cent, respectively, reversing gains from the previous session. 

China's yuan also weakened by 0.2 per cent to 7.2283 per dollar, nearing a four-month low, despite efforts by the central bank to provide support through its daily trading band adjustment.

On the other hand, Singapore's stock index, which has been the worst-performing in Asia this year, surged by 0.8 per cent, reaching its highest level since September 19. 

The uptick followed a notable increase in industrial production for February, aligning with the broader regional recovery in exports and manufacturing.

Elsewhere, Malaysian and Indonesian stocks dipped by 0.5 per cent and 0.3 per cent, respectively, while Thailand's benchmark index advanced by 0.4 per cent.

(With Reuters Inputs)