EM ASIA FX-Rupiah leads Asia FX gains; ringgit higher before budget


* 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

fiscal deficit.

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.


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)


View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Only 4 states will see cuts to food stamps

    Cuts to the nation's food stamp program enacted this year are only affecting four states, far from the sweeping overhaul that Republicans had pushed, an Associated Press review has found. As a result, it's unclear whether the law will realize the estimated $8.6 billion in savings over 10 years that…

    Associated Press
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance22 mins ago
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Best Womens Wrinkle Creams 2014

    Mom reveals simple wrinkle solution that has researchers very excited. Try this free solution today to look and feel years younger.

  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

  • Gold loses luster on Fed; Barclays cuts forecast

    Barclays cuts gold forecasts, sees increasingly bearish backdrop Bloomberg MA MB MC MD ME SAN FRANCISCO (MarketWatch) — Gold prices dipped Wednesday on concerns about a stronger dollar ahead of the Federal Reserve policy statement and in response to Barclays lowering its gold forecast.

  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Tired of Living Paycheck to Paycheck?

    New website reveals how to save $1,000's when you're living paycheck to paycheck. See exactly how.

    AdChoices Media ForceSponsored
  • Dow closes at record after Fed keeps rates intact

    The stock market got the reassurance it wanted from the Federal Reserve Wednesday. Low rates have been a boon to the market by helping stimulate the economy and making stocks more attractive compared with bonds. "The Fed is not going to take the punch bowl away," said Brad McMillan, chief…

    Associated Press50 mins ago
  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Romney-Sized IRAs Scrutinized as Government Studies Taxes

    The preliminary report attaches data to an issue that drew attention during the 2012 presidential campaign, when Republican nominee Mitt Romney reported an IRA worth $20 million to $102 million. Senate Finance Committee Chairman Ron Wyden said many of these "massive" accounts come from deals…

  • The Government Keeps Helping People Buy Failing Cold Stone Creamerys

    Would you loan someone money to buy a Cold Stone Creamery franchise if you knew that more than a quarter of those loans default? Over the last decade, franchisees in the Cold Stone Creamery ice cream chain defaulted on 29 percent of working-capital loans backed by the government, costing taxpayers…

  • Russian billionaire placed under house arrest

    A billionaire Russian tycoon was placed under house arrest Tuesday in a money-laundering case that has drawn comparisons with a government crackdown on Russia's Yukos oil company more than a decade ago. The Investigative Committee, Russia's top investigative agency, said that Vladimir Yevtushenkov,…

    Associated Press
  • The New 2015 Sonata®: A Step Above the Competition

    There's a Sonata® that's perfect for you, and this is your chance to build it! Visit the Hyundai® Official Site to customize your 2015 Sonata® today!

  • Facebook Is Hiding Important Information From Investors

    Facebook Is Hiding Important Information From Investors Facebook.com/sheryl On July 23, when Facebook reported its earnings for the second quarter, the company stunned everyone. Revenues were $2.68 billion, up 67% from the same quarter during the year

    Business Insider