* Philippine peso leads decline, drops 0.5% to week low * Trump threatens to fire Fed’s Cook; dollar index rises 0.2% * Asian tech stocks climb ahead of Nvidia results By Roushni Nair Aug 27 (Reuters) – Asian currencies slipped on Wednesday, as the dollar made a tentative rebound with concerns over the U.S. Federal Reserve’s independence, while equities traded cautiously ahead of Nvidia earnings, seen as a key indicator of the AI-driven rally. The Philippine peso led the pack lower to retreat 0.5% to a one-week low of 57.166 per U.S. dollar, on track to mark its third consecutive session of losses. The Indonesian rupiah, the Malaysian ringgit and Thailand’s baht followed suit to fall 0.3% each. The U.S. dollar index, which measures the currency against six major peers, rose 0.2% to 98.44, recovering from a 0.24% decline in the previous session. U.S. President Donald Trump said on Monday he would fire Federal Reserve Governor Lisa Cook over alleged mortgage improprieties, though Cook’s lawyer said she will challenge the move in court. The dollar had initially weakened after the development as investors lost confidence in the greenback following the president’s push for greater influence over monetary policy. The key risk is that concerns over Fed independence could lead to uncertainty around inflation and the Fed’s policy credibility, said Lloyd Chan, FX strategist at MUFG. “This may fuel increased volatility in U.S. interest rate expectations and the U.S. dollar, amplifying currency fluctuations across the Asia region, particularly for economies with high external vulnerabilities or high foreign portfolio exposure.” Despite Trump’s Fed gambit dominating headlines, traders are bracing for this week’s critical catalysts: Nvidia’s earnings and the U.S. inflation data on Friday. Asian technology stocks rose broadly in lacklustre trade ahead of Nvidia Corp’s second-quarter results, as investors looked to the chipmaker’s demand outlook for clues about whether the global tech rally since April can continue. The U.S. chipmaker will report after the bell on Wednesday. Chinese AI linchpin Cambricon Technologies Corp rose as much as 8.2% to its highest point following a record profit. Shares of Nikon Corp added 21% in Japan and chipmaker Samsung Electronics rose 0.6% in South Korea. Shares in Taiwan climbed as much as 1% to a one-week high, while those in South Korea were flat. Equities in the Philippines added 1.4% and shares in Indonesia and Singapore advanced 0.2% each, respectively. Looking ahead, the Bank of Korea and Bangko Sentral ng Pilipinas are due to announce rate decisions on Thursday. Economists expect South Korea to hold rates steady while the Philippines is poised to cut by 25 basis points, according to economists polled by Reuters. Bank Indonesia surprised markets last week with a 25-bp rate cut, while Thailand’s monetary policy should remain accommodative as the economy will face multiple headwinds ahead, the minutes of the central bank’s August 13 policy meeting showed. HIGHLIGHTS: ** China’s commerce minister met Saudi Arabia investment minister in Beijing ** Taiwan to name former TSMC board member as new economy minister Asia stock indexes and currenc ies at 0449 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan -0.35 +6.2 <.n2> China 0 EC> India +0.00 -2.3 <.ns ei=””> Indones -0.37 -1.5 <.jk ia=”” se=””> Malaysi -0.28 +5.7 <.kl a=”” se=””> Philipp -0.46 +1.5 <.ps i=”” ines=””> S.Korea 4 11> Singapo -0.22 +6.0 <.st i=”” re=””> Taiwan -0.02 +7.2 <.tw ii=””> Thailan -0.29 +5.4 <.se d=”” ti=””> 4 (Reporting by Roushni Nair in Bengaluru; Editing by Sherry Jacob-Phillips) .ps> .n2>
