EM ASIA FX-Rupiah up as rate hikes stun market; inflows lift won, Taiwan dlr

Reuters

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SINGAPORE, Sept 12 (Reuters) - The Indonesian rupiah

rebounded from its weakest levels since 2009 on Thursday after

the central bank unexpectedly raised the benchmark interest rate

for the second time in two weeks, while the South Korean won and

the Taiwan dollar advanced on capital inflows.

Bank Indonesia raised both the benchmark rate and overnight

deposit facility rate (FASBI) by 25 basis points, respectively,

as it strengthened defences for the rupiah ahead of

expected tapering of U.S. monetary stimulus next week.

The move, along with currency intervention, lifted the

rupiah spot and one-month non-deliverable forwards

. Early in the session, the spot rate had sunk to

near 4-1/23 year lows.

The central bank also allowed indicative prices to match

dealt levels, improving dollar liquidity, traders said.

The won hit its highest in more than six months

as foreign investors continued to buy Seoul shares and

on demand from offshore funds.

Foreign financial institutions also lifted the Taiwan dollar

.

Gains in the won and the Taiwan dollar were limited as the

foreign authorities were spotted intervening to stem

appreciation.

The Thai baht outperformed on stop-loss dollar

selling and equity inflows.

But the Indian rupee fell on dollar demand from a

large state-run bank and a large private petrochemical company.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0940 GMT

Currency Latest bid Previous day Pct Move

Japan yen 99.36 99.88 +0.52

Sing dlr 1.2677 1.2655 -0.17

Taiwan dlr 29.758 29.828 +0.24

Korean won 1084.57 1086.50 +0.18

Baht 31.75 31.96 +0.66

Peso 43.89 43.79 -0.23

Rupiah 11325.00 11330.00 +0.04

Rupee 63.90 63.38 -0.81

Ringgit 3.2761 3.2635 -0.38

Yuan 6.1180 6.1185 +0.01

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 99.36 86.79 -12.65

Sing dlr 1.2677 1.2219 -3.61

Taiwan dlr 29.758 29.136 -2.09

Korean won 1084.57 1070.60 -1.29

Baht 31.75 30.61 -3.59

Peso 43.89 41.05 -6.47

Rupiah 11325.00 9630.00 -14.97

Rupee 63.90 54.99 -13.94

Ringgit 3.2761 3.0580 -6.66

Yuan 6.1180 6.2303 +1.84

(Reporting by Jongwoo Cheon; Editing by)

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