EM ASIA FX-Rupiah down as U.S. political row rakes Asia FX

Reuters

(Updates prices. For midday report, double-click

)

SINGAPORE, Sept 30 (Reuters) - The Indonesian rupiah hit a

4-1/2 low and other Asian currencies fell broadly on Monday as

the increasing likelihood of a U.S. government shutdown prompted

investors to unload risky assets.

A disappointing final HSBC reading of September Chinese

factory activity also added to the weak tone of emerging Asian

currencies, with losses led by the rupiah and the Malaysian

ringgit.

The rupiah's indicative prices fell to as low as 11,660

against the dollar, according to Thomson Reuters data,

the weakest since March 2009.

A Jakarta-based trader said foreign banks bought dollars

versus the rupiah, adding that there might be some outflows from

Indonesia as there was some selling of government bonds as well.

Most Southeast Asian currencies were on track for quarterly

losses in the July-September period. By far the hardest hit was

the rupiah, which is on track for its worst quarterly

performance versus the dollar in 14 years.

According to Thomson Reuters data, the U.S. dollar

was on track for a quarterly gain of 16.9 percent against the

rupiah in July-September. That would be the dollar's best

quarter and the rupiah's worst, since July-September 1999, when

the greenback rose 23.9 percent against the Indonesian currency.

Due to Indonesia's current account deficit, the rupiah is

seen as more vulnerable to prospects for the U.S. Federal

Reserve to eventually reduce its bond-buying stimulus, compared

to other emerging currencies.

Other Asian currencies headed for quarterly losses included

the Indian rupee and the Malaysian ringgit. The dollar has

gained about 5.5 percent versus the rupee this quarter,

and 3.2 percent against the ringgit.

The Singapore dollar, however, showed resilience, with the

U.S. dollar on track for a 1 percent drop versus the

city-state's currency this quarter.

Other outperformers in July-September were the South Korean

won and the Taiwan dollar, which were helped

by their countries' superior fiscal and current account

positions.

The following table shows the position of Asian currencies

against the dollar at 0819 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0819 GMT

Currency Latest bid Previous day Pct Move

Japan yen 97.90 98.27 +0.38

Sing dlr 1.2557 1.2566 +0.07

Taiwan dlr 29.590 29.656 +0.22

Korean won 1073.70 1073.70 +0.00

Baht 31.33 31.32 -0.03

Peso 43.54 43.34 -0.46

Rupiah 11600.00 11535.00 -0.56

Rupee 62.64 62.51 -0.21

Ringgit 3.2620 3.2285 -1.03

Yuan 6.1211 6.1202 -0.01

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 97.90 86.79 -11.35

Sing dlr 1.2557 1.2219 -2.69

Taiwan dlr 29.590 29.136 -1.53

Korean won 1073.70 1070.60 -0.29

Baht 31.33 30.61 -2.30

Peso 43.54 41.05 -5.72

Rupiah 11600.00 9630.00 -16.98

Rupee 62.64 54.99 -12.21

Ringgit 3.2620 3.0580 -6.25

Yuan 6.1211 6.2303 +1.78

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(Editing by Kim Coghill)

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