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JAKARTA, May 13 (Reuters): Asian currency markets were mixed on Friday as investors weighed the effects of rapid acceleration in consumer prices on the global economy, while Malaysia's ringgit reversed course to post marginal gains after positive economic growth data.
The Singapore dollar was up 0.2%, while the Philippine peso was down 0.1%. Malaysia's ringgit, which began the day lower, rose 0.1% after the release of the GDP data. As of 0602 GMT, it traded marginally higher at 4.391 to the dollar.
Malaysia reported that its GDP grew 5% over the first quarter, higher than economists' expectations, as the lifting of COVID-19 restrictions boosted economic activity. Malaysian stocks also rose 0.8%.
Markets were still digesting Wednesday's high inflation print from the United States.
Fed Chair Jerome Powell said the policy effort against inflation will "include some pain", and reiterated his support for two consecutive 50 basis point hikes. U.S. yields dipped overnight on growth concerns but climbed back up 31 basis points to 2.886%.
Singapore yields also rose 50 basis points to 2.776%. India's rupee advanced 0.1%, a day after it hit a record low and likely prompted the central bank to intervene, selling 700 million dollars to keep the local currency afloat, according to traders.
India also reported late on Thursday that consumer prices rose 7.79%, well over the 6% upper limit of the central bank's tolerance range for the fourth consecutive month and above expectations.
"Now that the (Reserve Bank of India) is in hiking mode after their 40 bp hike this month, it may be worth considering if the next move will need to be 50 bp", analysts at ING said.
Stocks in India tracked broader Asian sentiment higher after a sharp selloff earlier in the week, climbing 0.8%.
"Overall sentiment seems to be seeing some slight reprieve in Asia's session after its recent sell-off, but markets may need a relief catalyst for a more sustaining upside", said Yeap Jun Rong, a market strategist at IG.
Other stock markets in Asia rose on the day, with Singapore gaining 1.1% and South Korea up 2%.
Indonesian stocks, however, fell 0.1% and were down more than 10% from their lifetime high on April 11, and set to lose nearly 9% this week.
Other major Asian stock indexes were also set to end lower for the week. Indonesia's rupiah also slipped 0.1%. A finance ministry offical said the economy would grow 5% this year, despite high inflation, due to higher exports. - Reuters
