EM ASIA FX-Rupee, rupiah lead Asia FX slides after solid U.S. data

Reuters

* Rupiah, rupee hit 3-week lows

* Indonesia Sept trade deficit larger than expected

* Most Asia FX to see weekly losses

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Nov 1 (Reuters) - The Indian rupee and Indonesian

rupiah led slides among emerging Asian currencies on Friday with

regional units heading for weekly losses as solid U.S. data

caused some investors to factor in a less dovish stance for the

Federal Reserve.

China's manufacturing sector grew at the fastest pace in 18

months in October, according to two surveys, helping emerging

Asian currencies recover some of Fridays initial losses.

Still, regional units stayed weaker on uncertainty over when

the Fed will begin tapering its bond-buying programme.

Both the rupiah and the rupee hit

three-week lows as those currencies are seen most vulnerable to

the Fed's tapering due to the current account deficits of those

countries. Earlier, Indonesia reported a larger-than-expected

September trade gap.

The dollar hit a two-week high against a basket of major

currencies after data showing business activity in the U.S.

Midwest rose more than expected in October. Weekly U.S. jobless

claims also fell.

The strong Chicago survey has fuelled speculation the

national ISM survey of manufacturing, due later on Friday, could

also surprise on the upside.

"U.S. ISM data will be released overnight, and while

expected to come in a touch lower, should still indicate a very

solid pace of expansion in the U.S. manufacturing sector,"

Scotiabank said in a client note.

"This could further set up for Asian weakness on Monday as

better U.S. data may play off of the less dovish Fed statement,"

it added.

Most emerging Asian currencies were poised to suffer weekly

losses as the Fed's stable stance this week disappointed some

who were expecting more dovish comments from the U.S. central

bank.

For the week, the rupiah was down 2.8 percent against the

dollar, which would be its largest weekly fall since late

August, according to Thomson Reuters data.

The Malaysian ringgit has lost 0.8 percent, while

the rupee has fallen 0.6 percent.

The Singapore dollar has eased 0.5 percent and the

Thai baht has shed 0.4 percent.

The Philippine peso, which did not trade in the

local market on Friday due to a holiday, lost 0.4 percent this

week.

RUPIAH

The rupiah lost as much as 1.0 percent for the day to 11,380

per dollar, its weakest since Oct. 11, on sustained rises in

government bond yields. Jakarta shares was down 1.1

percent, underperforming regional peers.

The forward onshore market, or Jakarta Interbank Spot Dollar

Rate (JISDOR), was fixed at 11,354 per dollar,

compared with Thursday's 11,234.

The rupiah spot pared some of earlier slides after data

showed consumer prices in October rose less than expected.

The Indonesian currency, however, gave up most of the

recovery to head to the session low as the September trade was

$660 million, larger than a Reuters poll forecast of $70

million, with weaker-than-expected export growth.

RINGGIT

The ringgit fell in thin trading as government bond yields

rose.

The Malaysian currency recovered some initial losses on

dollar selling for daily fixing.

Some investors bought the ringgit against the Singapore

dollar on dips, limiting its loss against the

city-state currency.

Against Singapore dollar, the ringgit was down 0.4 percent

to 2.5497, off the session low of 2.5613.

BAHT

The baht fell on weaker Bangkok stocks and as local

bond yields jumped.

The 10-year government bond yield rose to 4.01

percent, its highest since Sept. 23, while the five-year yield

advanced to 3.60 percent, its highest since Oct. 11.

In September, Thailand's current account swung to a deficit

with a slide in exports, central bank data showed on Thursday.

A senior Thai bank trader in Bangkok said the baht is seen

weakening to 31.25 per dollar.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0526 GMT

Currency Latest bid Previous day Pct Move

Japan yen 97.93 98.35 +0.43

Sing dlr 1.2422 1.2420 -0.02

Taiwan dlr 29.407 29.455 +0.16

Korean won 1061.50 1060.70 -0.08

Baht 31.17 31.10 -0.22

Peso 43.21 43.21 +0.00

Rupiah 11325.00 11265.00 -0.53

Rupee 61.83 61.50 -0.53

Ringgit 3.1690 3.1556 -0.42

Yuan 6.0945 6.0945 +0.00

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 97.93 86.79 -11.38

Sing dlr 1.2422 1.2219 -1.63

Taiwan dlr 29.407 29.136 -0.92

Korean won 1061.50 1070.60 +0.86

Baht 31.17 30.61 -1.80

Peso 43.21 41.05 -5.00

Rupiah 11325.00 9630.00 -14.97

Rupee 61.83 54.99 -11.06

Ringgit 3.1690 3.0580 -3.50

Yuan 6.0945 6.2303 +2.23

* Philippine financial markets are closed for a holiday.

(Additional reporting by IFR Markets' Catherine Tan; Editing by

Richard Borsuk)

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