LONDON: The Malaysian ringgit and Thai baht rose and other Asian currencies eked out minor gains while Asian shares fell, as investors held off taking fresh bets ahead of key U.S. data that could shed light on the Fed's easing cycle.
The ringgit gained as much as 0.4 per cent to trade at 4.323 per dollar, near 1-1/2-year highs and bringing its year-to-date gains to more than 6 per cent.
The Malaysian currency has rebounded from a 26-year low hit a few months ago to become the region's best performing currency, on expectations of strong economic growth in the Southeast Asian country, with robust inflows of foreign investment.
The Thai baht rose about 0.3 per cent, while other Asian currencies managed small gains, with the South Korean won , Singapore dollar, Chinese yuan and Taiwan dollar trading flat to 0.2 per cent higher.
The dollar index, which measures the strength of the greenback against six rivals, pared some of its overnight gains and traded marginally lower at 100.92. "There is as such no real movement in FX markets today ... So it's all about the data out of the U.S., it's all about what that does to the dollar," said Robert Carnell, Asia-Pacific head of research at ING.
Investors awaited the release of a U.S. labour market report next week, and the U.S. Federal Reserve's preferred inflation measure - the personal consumption expenditures index - on Friday, in an other-wise data-light week that has largely kept currencies drifting in narrow ranges.
In Asian equities, the tech-heavy benchmarks of Seoul and Taipei lost the most, falling as much as 1.5 per cent and 1.6 per cent, respectively.
A less-than-expected forecast from chip giant Nvidia made investors more wary after a dizzying rally in artificial intelligence companies.
Asia's most valuable stock, Taiwan Semiconductor Manufacturing, fell as much as 2.8 per cent, and South Korean Nvidia supplier SK Hynix fell as much as 6.8 per cent.
Other benchmarks such as Bangkok, Manila and Kuala Lumpur and Beijing traded between 0.3 per cent and 0.9 per cent lower.
Stocks in Jakarta, however, rose as much as 0.7 per cent to their third record high in the last 10 days.