* Rupiah to see best week since Sept 2009 on inflows
* Malaysia PM Najib's budget speech eyed
* Won dips on intervention caution, exporters limit losses
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, ct 25 (Reuters) - The Indonesian rupiah hit a
near eight-week high on Friday, leading gains among emerging
Asian currencies, as expectations the U.S. Federal Reserve will
maintain its bond-buying programme through early next year kept
the dollar pressured.
The rupiah is poised to enjoy the best week in more
than four years on capital inflows and demand from real money
The Malaysian ringgit gained on hopes the
government will announce later in the day measures to cut the
The dollar stayed around a nine-month low against a basket
of major currencies as a disappointing U.S. jobs data earlier
this week cemented views that the Fed's plans to taper its
stimulus won't start until next year.
"With the market pushing out the timing of Fed tapering
until March 2014, further portfolio inflows into emerging Asia
can be expected in the near-term," ANZ said in a client note.
Even before the U.S. September payrolls number, most
emerging Asian currencies had gravitated to the view that the
recently-ended 16-day U.S. government shutdown will likely
prompt the Fed to delay a shift in policy.
The rupiah took top honours in emerging Asia this week,
making the most out of the dollar's dour near term outlook.
The Indonesian currency has risen 3.0 percent against the
dollar, the largest weekly gain since the week ended on June 5,
2009, according to Thomson Reuters data.
The rupiah is seen as one of the most vulnerable to the
Fed's tapering due to Indonesia's sizable current account
deficit. It remains the worst-performing Asian currency of the
Last week, central bank Governor Agus Martowardojo said the
current account deficit is likely to ease to less than 3 percent
of gross domestic product. The gap hit 4.4 percent in the second
The ringgit has also gained 0.4 percent so far this week,
while the Taiwan dollar has risen 0.2 percent. The
Singapore dollar is up 0.1 percent.
The South Korean won took a different path,
turning weaker for the week with a 0.1 percent loss after the
foreign exchange authorities on Thursday were spotted buying
dollars after earlier warning against "excessive" won moves.
The rupiah rose as much as 1.6 percent to 10,970 per dollar,
its strongest since Sept. 2, on demand from custodian banks.
The forward onshore market, or Jakarta Interbank Spot Dollar
Rate (JISDOR), was fixed at 11,142 per dollar,
compared with Thursday's 11,268.
Five-year Indonesian government bond yield fell
to 6.896 percent, the lowest since July 10. Three-year yield
also slid to 6.631 percent, the lowest since June 25.
Domestic shares eased, but the market enjoyed
foreign buying in the previous two sessions.
A Jakarta-based trader said the rupiah may strengthen to
The ringgit advanced on hopes that the government may
announce steps to tackle Malaysia's fiscal deficit when Prime
Minister Najib Razak unveils the 2014 budget.
"Our fundamental view is mildly bullish on the budget and we
expect price to head towards 3.0770 should the budget meet
expectations," Maybank said, referring to the ringgit's value to
the dollar, in a note.
Still, local investors took profits to guard against any
disappointment from the prime minister's proposals.
The Malaysian currency has a chart resistance at 3.1410, a
200-day moving average.
The won edged down as offshore funds sold the currency on
heightened caution over possible intervention by the
Foreign investors were poised to report their first selling
day in Seoul's main stock market in 41 sessions.
Still, the won found relief from exporters' month-end demand
for settlements, traders said.
South Korea's economy grew 1.1 percent in the third quarter
from the previous three months, the central bank estimated,
slightly beating market expectations.
"The authorities are likely to keep the won around the
current level. The won's resistance is seen firmer if foreigners
stop a buying spree in the stock market," said a foreign bank
trader in Seoul.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
Japan yen 97.01 97.29 +0.29
Sing dlr 1.2372 1.2374 +0.02
Taiwan dlr 29.401 29.452 +0.17
Korean won 1061.90 1061.00 -0.08
Baht 31.14 31.16 +0.08
Peso 43.07 43.09 +0.05
Rupiah 10975.00 11140.00 +1.50
Rupee 61.54 61.46 -0.13
Ringgit 3.1455 3.1605 +0.48
Yuan 6.0823 6.0820 -0.00
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 97.01 86.79 -10.53
Sing dlr 1.2372 1.2219 -1.24
Taiwan dlr 29.401 29.136 -0.90
Korean won 1061.90 1070.60 +0.82
Baht 31.14 30.61 -1.69
Peso 43.07 41.05 -4.69
Rupiah 10975.00 9630.00 -12.26
Rupee 61.54 54.99 -10.64
Ringgit 3.1455 3.0580 -2.78
Yuan 6.0823 6.2303 +2.43
(Additional reporting by KyoungHo Lee in SEOUL and IFR Markets'
Catherine Tan; Editing by Shri Navaratnam)