* Rupiah hits 4-1/2 year low, weakest since March 2009
* Worries about possible U.S. govt shutdown hurt Asia FX
* China Sept final HSBC manufacturing PMI adds to weak tone
By Masayuki Kitano
SINGAPORE, Sept 30 (Reuters) - The Indonesian rupiah hit a
4-1/2 low and Asian currencies fell broadly on Monday as the
increasing likelihood of a U.S. government shutdown prompted
investors to unload risky assets and currencies.
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
"It's a very typical risk-off move, and not just in the
rupiah," said Satoshi Okagawa, senior global markets analyst for
Sumitomo Mitsui Banking Corporation in Singapore, referring to
Monday's broad decline in emerging currencies.
Asian bonds and equities were also facing selling pressure
due to the worries about a possible U.S. government shutdown,
If a stop-gap spending bill for the new fiscal year is not
passed before midnight on Monday, U.S. government agencies and
programmes deemed non-essential will begin closing their doors
for the first time in 17 years. [ID:ID:nL2N0HP04U]
The standoff is a harbinger of the next big U.S. political
battle: raising the federal government's borrowing authority.
Failure to do so by mid-October may result in a debt default
that could cripple the U.S. economy and send shockwaves around
The Indonesian rupiah's indicative prices fell to as low as
11,660 against the dollar, according to Thomson Reuters data,
the weakest level since March 2009. The rupiah last stood at
11,640, down 0.9 percent for the day.
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.
Yields on 10-year Indonesian bonds last stood at 8.496
percent, up about 27 basis points on the day,
according to Thomson Reuters data.
A near-term focal point for the rupiah is Indonesia's August
trade and September inflation data, which are due on Tuesday.
The rupiah has been the worst performing Asian currency in
2013 with a near 17 percent slide against the dollar, according
to Thomson Reuters data.
Due to Indonesia's current account deficit, the rupiah is
seen as more vulnerable to the Federal Reserve's expected
reduction in bond-buying stimulus than are other emerging
While the rupiah gained a bit of reprieve after the Fed
surprised markets on Sept. 18 by not trimming its bond buying,
the currency has come under renewed pressure over the past week.
The Indian rupee fell , but was still on
course for its best monthly performance against the dollar in a
Dealers will await the June-quarter current account and
balance of payments data, due at 1130 GMT, with economists
expecting the gap to widen from the March quarter.
India's high current account gap has made the country
especially vulnerable to a surge in capital flows out of
emerging markets in recent months, sending the rupee down as
much as 20 percent this year to a record low on Aug. 28,
although it has since recovered ground.
The following table shows the position of Asian currencies
against the dollar at 0527 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0527 GMT
Currency Latest bid Previous day Pct Move
Japan yen 97.91 98.27 +0.37
Sing dlr 1.2571 1.2566 -0.04
Taiwan dlr 29.566 29.656 +0.30
Korean won 1073.90 1073.70 -0.02
Baht 31.37 31.32 -0.16
Peso 43.54 43.34 -0.46
Rupiah 11640.00 11535.00 -0.90
Rupee 62.79 62.51 -0.45
Ringgit 3.2580 3.2285 -0.91
Yuan 6.1185 6.1202 +0.03
Change so far in
Currency Latest bid End prev year Pct Move
Japan yen 97.91 86.79 -11.36
Sing dlr 1.2571 1.2219 -2.80
Taiwan dlr 29.566 29.136 -1.45
Korean won 1073.90 1070.60 -0.31
Baht 31.37 30.61 -2.42
Peso 43.54 41.05 -5.72
Rupiah 11640.00 9630.00 -17.27
Rupee 62.79 54.99 -12.42
Ringgit 3.2580 3.0580 -6.14
Yuan 6.1185 6.2303 +1.83
(Additional reporting by Subhadip Sircar in MUMBAI; Editing by