* Won hits 8-mth high on stock inflows
* Taiwan dlr at 4-month peak on foreign demand, exporters
* Intervention limits won, Taiwan dlr upside -traders
* Rupiah down on corp dlr demand; c.bank sells dlrs
(Adds details, updates prices)
By Jongwoo Cheon
SINGAPORE, Sept 23 (Reuters) - The South Korean won and the
Taiwan dollar hit multi-month highs on Monday, helped by more
signs of China's economic turnaround, while most emerging Asian
currencies slid on renewed worries that the Federal Reserve will
cut its monetary stimulus.
Growth in China's factory sector accelerated to a six-month
high in September, a preliminary survey showed, as stronger
domestic and foreign demand added to recent signs of a tentative
turnaround in the world's second-largest economy.
The won touched a near eight-month peak on
sustained stock inflows. The Taiwan dollar advanced to
its strongest in more than four months on demand from foreign
financial institutions and exporters.
The Northeast Asian units found further support from
catch-up plays as their financial markets were closed late last
week when the Fed surprised global investors by standing pat,
which boosted regional peers.
In contrast, most Southeast Asian currencies fell on Monday
after a top Fed official suggested there is a chance of tapering
next month, although those units pared some losses after the
encouraging China survey.
"It reflects a theme of mild outperformance in new
industrialised economies' currencies, not just catch-up plays
even as we see cautious environment following the Fed non-taper
move last week," said Saktiandi Supaat, head of FX research for
Maybank in Singapore, referring to Singapore, South Korea and
"They will keep outperforming on better fundamentals,
correlation and more direct links with developed markets'
recovery as long as the uncertainty of a taper or an eventual
taper does not derail the U.S. or developed market recovery," he
The won and the Taiwan dollar have weathered concerns over
the Fed's policy shift better than Southeast Asian peers as
their high-tech exports have benefited from a global recovery.
The won advanced 0.8 percent to 1,075.0 per dollar as
foreign investors extended a buying spree to a 19th session in
Seoul's main stock exchange.
Still, South Korea's foreign exchange authorities were
spotted intervening to stem its upside, traders said.
Such official dollar purchases prevented exporters from
chasing the won for month-end settlements, they added.
"Everybody is cautious over the authorities here. China PMI
added support, but the won is likely to stay around the current
levels," a foreign bank trader in Seoul, referring to the flash
HSBC Purchasing Managers' Index.
China is South Korea's top export market.
The Taiwan dollar rose as much as 0.8 percent to 29.505 to
the U.S. dollar, its strongest since May 10, on inflows from
foreign financial institutions and exporters' demand.
But its upside was limited in thin trade as the central bank
was spotted buying small amounts of U.S. dollars around 29.520,
Local importers also purchased the greenback for payments,
while some foreign institutions joined them, according to
The rupiah lost ground on increasing dollar demand from
local companies for month-end payments.
The forwards market pointed to further depreciation with
one-month non-deliverable forwards to the dollar
weakening to 11,310.
The central bank was spotted providing dollar liquidity
around the session low of 11,470 per dollar, traders said.
"BI wants to maintain that level first," said a
Jakarta-based trader, referring to Bank Indonesia.
"But the rupiah will weaken more this week as dollar demand
is intensifying," he added.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
Japan yen 99.12 99.31 +0.19
Sing dlr 1.2490 1.2523 +0.26
Taiwan dlr 29.570 29.752 +0.62
Korean won 1075.80 1084.10 +0.77
Baht 31.12 30.95 -0.56
Peso 43.16 43.06 -0.24
Rupiah 11470.00 11340.00 -1.13
Rupee 62.37 62.23 -0.22
Ringgit 3.1710 3.1645 -0.20
Yuan 6.1180 6.1212 +0.05
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 99.12 86.79 -12.44
Sing dlr 1.2490 1.2219 -2.17
Taiwan dlr 29.570 29.136 -1.47
Korean won 1075.80 1070.60 -0.48
Baht 31.12 30.61 -1.64
Peso 43.16 41.05 -4.89
Rupiah 11470.00 9630.00 -16.04
Rupee 62.37 54.99 -11.83
Ringgit 3.1710 3.0580 -3.56
Yuan 6.1180 6.2303 +1.84
(Additional reporting by Miao-jung Lin in TAIPEI and Yena Park
in SEOUL; Editing by Richard Borsuk)
- Asia News
- Taiwan dollar