* Asia FX to see weekly gains
* Won, Taiwan dollar up on stock inflows
* S.Korea says watching if offshore speculators moving won
(Adds text, updates prices)
By Jongwoo Cheon
SEOUL, Oct 18 (Reuters) - Most emerging Asian currencies
rose on Friday and posted gains on the week on solid China
growth and as worries about the economic impact of the recent
U.S. government shutdown prompted expectations that the Federal
Reserve may keep its stimulus longer.
The Indian rupee hit its strongest in more than two
months on strong local stocks, outperforming regional peers.
The South Korean won also touched a near
nine-month peak as foreign investors reported the longest buying
streak in Seoul stocks.
The Taiwan dollar advanced on stock inflows.
The U.S. dollar fell broadly as the potential damage to the
economy from the weeks-long shutdown in Washington could prevent
the Fed from dialing back its bond-buying programme at least
until the beginning of next year.
Expectations of a potential shift in the U.S. central bank's
stimulus had weighed on emerging Asian currencies earlier this
Adding to support to regional units, China's economy grew
7.8 percent in the third quarter, its fastest pace this year and
in line with expectations, although volatile global demand may
dent the world's second-largest economy.
The Chinese yuan hit a record high for the fifth
consecutive session to enjoy its best week since February 2012.
"Asian currencies are likely to gain more as expectations
for the Fed tapering eased and China economy is more likely to
see a soft landing," said Yuna Park, a currency and bond analyst
at Dongbu Securities in Seoul.
"It looks good to buy some of battered ones such as the
rupee for a very short-term, especially until the tapering views
revive," Park added.
Emerging Asian currencies were poised for weekly gains, led
by the won.
The South Korean currency has risen 1.0 percent against the
dollar so far this week, according to Thomson Reuters data. The
yuan has risen 0.5 percent.
The Malaysian ringgit has gained 0.9 percent and
the Thai baht has advanced 0.8 percent.
The Singapore dollar has been up 0.6 percent, while
the Taiwan dollar has risen 0.4 percent.
The won rose as much as 0.3 percent to 1,060.1 per dollar,
its strongest since Jan. 21, as foreign investors were set to
extend their buying spree in South Korea's main stock exchange
to a record 36th consecutive session.
The South Korean currency, however, gave up some of initial
gains as a finance ministry official said the country is closely
watching whether offshore speculators are contributing to recent
foreign capital inflows and the won's movements.
Some short-term offshore funds took profits from the won's
gains, traders said.
"The warning is expected to cap the won for a short-term,"
said a foreign bank trader in Seoul.
"But the won will eventually test this year's high. I am
waiting to buy the won on any dips," the trader added, referring
to the won's peak of 1,054.5 per dollar hit on Jan. 15.
The Taiwan dollar gained as stock inflows lifted local
shares. It also found support from stronger yuan and
Domestic exporters are also expected to buy the Island's
currency around 29.400 to the U.S. dollar.
Investors, however, stayed wary of possible intervention by
the central bank to stem the local dollar's appreciation,
especially after South Korea's warning.
Taiwanese importers bought U.S. dollars for payments around
29.380, limiting the Taiwan dollar's upside.
The Indonesian rupiah advanced up to 0.4 percent to
11,277 per dollar, its strongest since Sept. 19, on demand from
The forward onshore market, or Jakarta Interbank Spot Dollar
Rate (JISDOR), was fixed at 11,308, compared to
The Indonesian currency is likely to gain further on
expectations that the Fed will delay reductions in its stimulus
programme, traders said.
Predictions of the U.S. central bank's policy shift had hit
the rupiah harder than other emerging Asian currencies because
of Indonesia's current account deficit.
Still, the rupiah's upside is seen limited by dollar bids
from local companies, traders said.
"I see strong resistance at 11,000 as I still think the
dollar demands of Indonesia is huge," a Jakarta-based trader
For the week, the rupiah has gained 0.3 percent against the
CURRENCIES VS U.S. DOLLAR
Change on the day at 0510 GMT
Currency Latest bid Previous day Pct Move
Japan yen 98.00 97.93 -0.07
Sing dlr 1.2381 1.2394 +0.10
Taiwan dlr 29.386 29.452 +0.22
Korean won 1061.20 1063.70 +0.24
Baht 31.01 31.04 +0.10
Peso 43.08 43.07 -0.03
Rupiah 11320.00 11325.00 +0.04
Rupee 61.00 61.23 +0.39
Ringgit 3.1500 3.1495 -0.02
Yuan 6.0930 6.0982 +0.09
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.00 86.79 -11.44
Sing dlr 1.2381 1.2219 -1.31
Taiwan dlr 29.386 29.136 -0.85
Korean won 1061.20 1070.60 +0.89
Baht 31.01 30.61 -1.29
Peso 43.08 41.05 -4.71
Rupiah 11320.00 9630.00 -14.93
Rupee 61.00 54.99 -9.85
Ringgit 3.1500 3.0580 -2.92
Yuan 6.0930 6.2303 +2.25
(Additional reporting by Roger Tung in TAIPEI; Editing by Kim
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