* Rupiah at fresh 4-year low on corp dollar demand
* Ringgit falls more after weaker trade balance
* Won rises on stock inflows, short-covering
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Sept 6 (Reuters) - Most emerging Asian currencies
fell on Friday and are set for weekly losses due to growing
expectations of a withdrawal of the Federal Reserve's stimulus
before a key U.S. jobs report, while the South Korean won bucked
the trend on stock inflows.
The Indonesian rupiah hit a fresh four-year low on
sustained dollar demand from local companies and weaker stocks.
The Malaysian ringgit fell more after data showed
the country's July trade surplus missed market expectations.
The dollar held firm near a seven-week high against a basket
of currencies after a strong U.S. service sector report and a
solid private jobs figure.
The 10-year U.S. Treasury bond yield stayed
around 3.00 percent.
"Concerns are becoming intense for Asian markets and the
re-adjustment to normalcy in U.S. financial markets are still
ongoing," said Suresh Kumar Ramanathan, head of regional
interest rate and FX strategy at CIMB Investment Bank in Kuala
"The steepness in the U.S. treasury yield curve, more so due
to economic fundamentals of the U.S. economy being positive, has
rattled Asian markets as interest rate spreads continue to
narrow against Asia debt papers," he added.
Most emerging Asian currencies are on the course for weekly
slides, led by the rupiah.
For the week, the Indonesian currency's indicative prices
have lost 2.2 percent against the dollar so far this week,
according to Thomson Reuters data.
The ringgit has fallen 1.3 percent and the Thai baht
has eased 0.7 percent. The Singapore dollar
has dipped 0.4 percent.
The Indian rupee fell 0.8 percent despite a sharp
rebound on Thursday after the new central bank chief unveiled
steps to support the ailing currency.
Regional units are expected to weaken further if August U.S.
jobs data cement views the Fed may start scaling back its
bond-buying programme as soon as this month, analysts and
"I don't think Asian currencies have fully priced the Fed
tapering and earlier than expected timeline of the reduction in
the Fed balance sheet yet," said Saktiandi Supaat, head of FX
research for Maybank in Singapore.
"Emerging market outflows probably will continue slowly,
volatility will remain significant in the near term and so
dollar/Asia will have room for slight moves upside in the near
U.S. non-farm payrolls were estimated to rise 180,000 in
August, according to a Reuters poll.
Despite regional weaknesses, the South Korean won
has risen 1.3 percent so far this week, thanks to capital
inflows and demand from local exporters.
Spot indicative rupiah lost 0.5 percent to 11,150 per
dollar, while it traded weaker than the level on strong demand
from local companies, traders said.
The central bank was spotted providing dollar liquidity
around the screen price, but the rupiah was seen weakening
further, traders added.
Forwards markets pointed to further weakness with one-month
non-deliverable forwards sliding to 11,960, the
weakest since March 2009.
The one-month offshore/onshore forward spread widened to 712
basis points, the widest since November 2008, during the global
The ringgit extended its slide as Malaysia reported a 2.9
billion ringgit ($877.5 million) trade surplus in July, lower
than a forecast of 3.9 billion ringgit.
Earlier, the Malaysian currency was already under pressure
from bond outflows and as investors were cautious before the
U.S. jobs data, traders said.
"Nobody wants to stay short dollar before the weekend," said
a senior Malaysian bank trader in Kuala Lumpur.
The won gained as demand linked to foreigners' continuous
stock purchases prompted short-covering and on a lack of
importers' dollar purchases.
Investors stayed cautious over possible intervention by the
foreign exchange authorities to stem its upside.
Still, the won was expected to stay firm, traders and
"Any dips in the won would be short lived," said Jeong
My-young, Samsung Futures research head in Seoul.
"The won may see some corrections if other major currencies
fall. But it will find solid support at 1,110," she added,
referring to the won's value against the dollar.
The Taiwan dollar rose from Thursday's close of
29.985 per U.S. dollar, when it fell back from central bank
intervention to smoothen trade volatility, traders said.
The island's currency found support from inflows of foreign
financial institutions, they added.
But it was facing a strong chart resistance at 29,700,
It has a 200-day moving average at 29,713 and has been
closing local daily sessions weaker than the average since May
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
Japan yen 99.91 100.11 +0.20
Sing dlr 1.2799 1.2808 +0.07
Taiwan dlr 29.787 29.985 +0.66
Korean won 1096.10 1098.40 +0.21
Baht 32.40 32.31 -0.28
Peso 44.52 44.54 +0.03
Rupiah 11150.00 11100.00 -0.45
Rupee 66.25 66.01 -0.36
Ringgit 3.3270 3.3050 -0.66
Yuan 6.1204 6.1199 -0.01
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 99.91 86.79 -13.13
Sing dlr 1.2799 1.2219 -4.53
Taiwan dlr 29.787 29.136 -2.19
Korean won 1096.10 1070.60 -2.33
Baht 32.40 30.61 -5.52
Peso 44.52 41.05 -7.79
Rupiah 11150.00 9630.00 -13.63
Rupee 66.25 54.99 -17.00
Ringgit 3.3270 3.0580 -8.09
Yuan 6.1204 6.2303 +1.80
($1 = 3.3050 Malaysian ringgits)
(Reporting by Jongwoo Cheon in SINGAPORE; Editing by Jacqueline
- USA News