SINGAPORE, June 6 (Reuters) — Asian currencies weakened on Tuesday after traders interpreted comments on inflation by the US Federal Reserve chairman as a signal that US rates would go still higher.
The Singapore dollar fell as much as 0.4 percent to 1.5793 per dollar. The Thai baht lost as much as a quarter of a percent to 38.19 per dollar and the Philippine peso lost as much as 0.3 percent to 52.89 per dollar.
Financial markets in South Korea were closed for a holiday.
The Fed chairman, Ben Bernanke, said on Monday the central bank must remain vigilant to ensure that inflation stays under control even as growth in the world’s largest economy slowed.
Analysts said the comments increased the chances that the central bank would raise its benchmark rate for the 17th straight time to 5.25 percent when it meets at the end of the month.
US stocks fell after the comments, dragging Asian stocks lower on Tuesday.
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