The U.S. dollar rose to its highest in more than two years versus a basket of currencies ahead of data forecast to show the U.S. manufacturing sector returned to growth. [FRX/]
The dollar strength weighed on most Asian currencies in thin trade, with markets in China closed for the rest of the week for holidays.
The won
"We think the BoK (Bank of Korea) will cut interest rates by a further 50bp, with one cut this month and another in January next year," research firm Capital Economics said in a note.
The Singapore dollar slid 0.2%.
The city-state's central bank is expected to ease monetary policy at its semi-annual meeting slated to be held no later than Oct. 14, according to a Reuters poll. [nL3N26I1KR]
The Indonesian rupiah
"With inflation contained and Bank Indonesia keen to support growth, further monetary policy easing looks likely," ANZ Research said.
The Indian rupee
The Philippine peso declined 0.2%, snapping a four-session winning streak.
The Philippine central bank on Monday had said that September annual inflation was likely to settle within 0.6%-1.4% range. [nP9N22Q02M]
Bangko Sentral ng Pilipinas had cut its 2019 inflation forecast last week. Easing inflation has allowed the central bank to cut its benchmark interest rate three times this year in a bid to arrest slowing growth.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Aditya Soni)
By Shreya Mariam Job