* Baht down as Thai shares hits 1-mth low
* Rupiah lower on weaker stocks, bonds
* Some foreign banks buy Indonesia bonds for yields -traders
* Philippine peso falls on catch-up plays
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Nov 4 (Reuters) - Most emerging Asian currencies
extended slides on Monday as investors added bearish bets on
growing expectations that the U.S. Federal Reserve may start to
scale back its stimulus this year after strong economic data.
A weaker euro also hurt emerging Asian currencies amid
increasing views that the European Central Bank will be forced
to cut interest rates to support growth. Regional currencies
failed to find support from strong Chinese service sector
The Thai baht weakened on fears about heightening
opposition against a political amnesty bill.
The Indonesian rupiah slid on lower stocks and bond
prices, while the Philippine peso fell on catch-up
"You get a stronger USD this month since the October data,
which was expected to be weak from the U.S. (government)
shutdown. But it isn't having as much impact on the October
economic data," said Sean Yokota, head of Asia strategy at
Scandinavian bank SEB in Singapore.
Emerging Asian currencies are expected to retreat further,
Last week, most regional units fell as solid U.S. data
revived expectations that the Fed might reduce its monthly
bond-buying programme starting in December, rather than in March
as many in the market currently anticipate.
The U.S. manufacturing sector expanded at its fastest pace
in more than two years in October, an industry report showed on
Friday, spurring views on the Fed's possible policy shift.
Still, some traders preferred a defensive stance ahead of
policy meetings of major central banks this week including the
ECB's gathering on Thursday. Investors are also awaiting
economic data such as U.S. October jobs data due on Friday.
"There is no reason for Asian currencies to be strong and
the market stays long dollar versus Asia," said a senior
Malaysian bank trader in Kuala Lumpur.
"But this week, we got a lot of big events, so market will
The baht fell as Bangkok shares hit a near one-month
low, underperforming peers in Southeast Asia, amid worries about
"There is going to be a demonstration this afternoon in
central Bangkok, and there is some wariness about that," said a
trader for a Japanese bank in Singapore.
"I wonder whether this will be an issue that will last for a
while. Especially in the case of topics related to politics,
they often tend to simmer," he added.
Five-year bond yield rose to 3.63 percent, the
highest since Oct. 1.
Thousands of protesters took to the streets of the Thai
capital on Friday after lawmakers approved a draft political
amnesty bill that could allow the return of self-exiled former
premier Thaksin Shinawatra, one of Thailand's most polarising
The rupiah fell as Indonesian stocks and bond prices
The 10-year bond yield rose to 7.853 percent
from Friday's 7.563 percent, while the five-year yield
advanced to 7.269 percent from 7.031 percent. The
three-year yield jumped to 7.106 percent from 6.647
The forward onshore market, or Jakarta Interbank Spot Dollar
Rate (JISDOR), was fixed at 11,389 per dollar,
compared with Friday's 11,354.
Some foreign banks, however, bought Indonesian bonds,
limiting the rupiah's downside, traders said.
"Offshore investors still demand higher yields," said a
Jakarta-based trader, adding the rupiah is seen finding support
around 11,400 per dollar.
The peso lost as much as 0.4 percent to 43.37 per dollar,
its weakest since Oct. 2.
Investors added dollar positions against the Philippine
currency. Local financial markets were closed on Friday when
most other emerging Asian currencies fell.
The peso found some relief with three- and five-year bond
yields lower, but traders looked to sell it on rallies.
"Buying dollar on dips is still preferred play on
dollar/peso, given that the downside remains well defended by
intervention," said a senior Philippine bank trader in Manila.
The peso may weaken to 43.50 per dollar in a near term and
eventually 43.70, the trader added.
The central bank had been spotted buying dollars to stem
volatility when the peso was around 43.00 per dollar, traders
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
*Japan yen 98.75 98.72 -0.03
Sing dlr 1.2423 1.2430 +0.06
Taiwan dlr 29.418 29.470 +0.18
Korean won 1061.95 1060.70 -0.12
Baht 31.28 31.19 -0.29
Peso 43.32 43.21 -0.25
Rupiah 11365.00 11330.00 -0.31
*Rupee 61.74 61.74 +0.00
Ringgit 3.1760 3.1725 -0.11
Yuan 6.0991 6.0995 +0.01
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.75 86.79 -12.11
Sing dlr 1.2423 1.2219 -1.64
Taiwan dlr 29.418 29.136 -0.96
Korean won 1061.95 1070.60 +0.81
Baht 31.28 30.61 -2.14
Peso 43.32 41.05 -5.24
Rupiah 11365.00 9630.00 -15.27
Rupee 61.74 54.99 -10.93
Ringgit 3.1760 3.0580 -3.72
Yuan 6.0991 6.2303 +2.15
* Financial markets in India and Japan are closed for holidays.
(Additional reporting by Masayuki Kitano; Editing by Kim
- Philippine peso