SINGAPORE, Sept 26: The Indian rupee and the Taiwan dollar led gains among emerging Asian currencies today, though investors hesitated to make heavy bets on regional units amid caution over a deadlock in the US budget deal.
The rupee rose after the central bank eased norms for providing swaps to banks that are borrowing funds overseas.
The Taiwan dollar gained on exporters and foreign financial institutions. The South Korean won also advanced on sustained stock inflows.
But the Indonesian rupiah fell on dollar demand from local companies for month-end payments.
Both the U.S. Debt ceiling and government funding issues have been complicated by Republican attempts to use the must-do bills to gut President Barack Obama’s healthcare law. Lawmakers must reach a budget deal by Monday that would allow the government to keep running.
‘The budget impasse may hurt risk sentiment,’ said Yuna Park, a currency and bond analyst at Dongbu Securities in Seoul.
‘But the Fed may postpone tapering in October again, if we don’t see a clear solution on the deal. So, Asian currencies may not fall much,’ Park added.
TAIWAN DOLLAR
The Taiwan dollar rose on demand from foreign financial institutions and exporters, traders said, but trading was thin.
The island’s currency is expected to move between 29.500 per the greenback and 29.650 as investors keep an eye on the U.S. budget issues.
WON
The won edged higher on exporters’ month-end demand for settlements and as foreign investors extended a buying spree in Seoul’s main stock market for a 22nd straight session.
Offshore funds, however, sold the South Korean currencies on rallies, traders said, on caution over possible intervention by the foreign exchange authorities.
‘We are growing more concerned about the decline in the (dollar-won) exchange rate given its rapid decline recently,’ said Choi Hee-nam, a director general at the Ministry of Strategy and Finance who oversees foreign-exchange related matters including market interventions.
With such comments, offshore dollar demand was getting stronger, a South Korean bank trader in Seoul.
‘Without more exporters’ deals, the won is unlikely to rise further,’ said the trader.
RUPIAH
The rupiah fell as much as 0.9 percent to 11,580 per dollar, matching the low of Tuesday and Wednesday, which was the weakest since April 2009.
The Indonesian currency found some relief from foreign banks’ bids as the central bank was expected to intervene to support the ailing currency.
‘BI will still maintain the 11,600 level,’ said a Jakarta-based trader, referring to Bank Indonesia.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0405 GMT
Currency Latest bid Previous day Pct Move
Japan yen 98.90 98.43 -0.48
Sing dlr 1.2544 1.2545 +0.01
Taiwan dlr 29.566 29.690 +0.42
Korean won 1074.20 1076.70 +0.23
Baht 31.28 31.33 +0.16
Peso 43.38 43.44 +0.14
Rupiah 11555.00 11480.00 -0.65
Rupee 62.23 62.44 +0.34
Ringgit 3.2150 3.2230 +0.25
Yuan 6.1192 6.1200 +0.01
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.90 86.79 -12.24
Sing dlr 1.2544 1.2219 -2.59
Taiwan dlr 29.566 29.136 -1.45
Korean won 1074.20 1070.60 -0.34
Baht 31.28 30.61 -2.14
Peso 43.38 41.05 -5.37
Rupiah 11555.00 9630.00 -16.66
Rupee 62.23 54.99 -11.63
Ringgit 3.2150 3.0580 -4.88
Yuan 6.1192 6.2303 +1.82
(agencies)
Follow our WhatsApp channel