* Rupiah at near 4-week low on foreign banks, corp dlr bids
* Indonesia to sell 8 trln rupiah bonds
* Indonesia economy grows 5.62 pct y/y in Q3
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Nov 6 (Reuters) - The Indonesian rupiah slid on
Wednesday in line with weaker bonds while India's rupee led
falls among emerging Asian currencies as a strong U.S. economic
report rekindled fears the U.S. Federal Reserve may scale back
its stimulus from next month.
The rupiah earlier fell as much as 0.6 percent to
11,410 per dollar, its weakest since Oct. 11, on selling from
foreign banks and dollar demand from local companies.
The forward onshore market, or Jakarta Interbank Spot Dollar
Rate (JISDOR), was fixed at 11,414 per dollar,
compared with the previous 11,389. Ten-, five- and three year
bond yields rose.
The Indonesian currency recovered slightly as some foreign
and local banks covered short positions before the government's
bond sale later in the day. Third quarter growth data did not
have much impact on the rupiah because the figures were in line
The country plans to raise 8 trillion rupiah ($704.5
million) and the auction could draw strong demand, traders and
"The yields Indonesia government bonds are offering are
attractive, so investors could be chasing after yields in the
short-term, as a tactical play," said Frances Cheung, senior
strategist at Credit Agricole CIB in Hong Kong.
The rupiah has been weaker on lower bond prices since late
October on a revival in expectations that the Fed may start
cutting its bond-buying programme sooner than next March.
The Indonesian currency, along with the Indian rupee
, was seen as most vulnerable to a Fed policy shift
which could reduce capital inflows many countries rely on to
fund current account deficits.
On Tuesday, an industry report showed U.S. service-sector
business activity picked up in October and firms took on
workers, an encouraging outcome in a month that saw a political
standoff force a 16-day partial government shutdown.
The Malaysian ringgit fell as much as 0.5 percent
to 3.1900 per dollar as local investors bought dollars.
Malaysian government five-year bond's yield rose
to 3.501 percent from the previous session's 3.472 percent.
Three-year yield also advanced 2 basis points to
The ringgit pared some initial losses on short-covering, but
traders still preferred bearish bets on the expectation that the
Fed may scale back its stimulus this year.
The Malaysian currency is seen having room to weaken further
to 3.2032, the 38.2 percent Fibonacci retracement of its
appreciation between August and October.
The peso eased as Manila shares shed 0.6
percent, underperforming most regional stocks.
The peso, however, recovered some of its earlier losses on
bond inflows and demand from foreign funds.
Yield on the three-year government bond slid to
2.26 percent, the lowest since April 26. Five- and ten-year
yields also fell.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0500 GMT
Currency Latest bid Previous day Pct Move
Japan yen 98.66 98.50 -0.16
Sing dlr 1.2427 1.2420 -0.06
Taiwan dlr 29.410 29.466 +0.19
Korean won 1060.60 1061.20 +0.06
Baht 31.27 31.24 -0.10
Peso 43.24 43.20 -0.10
Rupiah 11385.00 11345.00 -0.35
Rupee 61.91 61.63 -0.46
Ringgit 3.1800 3.1740 -0.19
Yuan 6.0958 6.0968 +0.02
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.66 86.79 -12.03
Sing dlr 1.2427 1.2219 -1.67
Taiwan dlr 29.410 29.136 -0.93
Korean won 1060.60 1070.60 +0.94
Baht 31.27 30.61 -2.11
Peso 43.24 41.05 -5.06
Rupiah 11385.00 9630.00 -15.42
Rupee 61.91 54.99 -11.18
Ringgit 3.1800 3.0580 -3.84
Yuan 6.0958 6.2303 +2.21
($1 = 11355 rupiah)
(Additional reporting by IFR Markets' Catherine Tan; Editing by
- Indonesian rupiah