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EM ASIA FX-Rupee leads Asia FX slide; SE Asia currencies at multi-year lows
August 27, 2013 / 5:08 AM / 4 years ago

EM ASIA FX-Rupee leads Asia FX slide; SE Asia currencies at multi-year lows

* India lawmakers approve plan of $20 bln grain for poor
    * Rupiah at fresh 4-year low on corp dlr demand, weak stocks
    * Ringgit at 3-year low on foreign selling
    * Capital outflows push baht to 3-year low
    * Philippine peso at 2-1/2-year low; stocks fall over 4 pct

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Aug 27 (Reuters) - The Indian rupee fell towards
record lows on Tuesday, leading slides among emerging Asian
currencies with Southeast Asian units at multi-year lows as
concerns over possible U.S. military action against the Syrian
government dented risk sentiment.
    The rupee slid after the lower house of Parliament
approved a plan worth nearly $20 billion to provide cheap grain
to the poor. 
    The Indonesian rupiah hit a fresh four-year low on
corporate dollar demand.
    The Malaysian ringgit touched its lowest in more
than three years on selling by foreigners, while the Thai baht
 hit a three-year low on capital outflows.
    The Philippine peso fell to its weakest in more
than two and a half years as local stocks plunged.
    "Syria escalated geopolitical risks and appetite for a safe
haven. That will put pressure on Asian currencies," said Jeong
my-young, Samsung Futures research head in Seoul.
    "Some of them, like the rupee and the rupiah, are unlikely
to see a recovery as their problems are not a short-term
liquidity issue. Even though they do their best, it will take a
long time to stabilise their economies," said Jeong.
    The two currencies were most vulnerable to an anticipated
withdrawal in quantitative easing by the Federal Reserve due to
India and Indonesia's widening current account deficits, slowing
economic growth and strong resistance to implementing
much-needed reforms.
    Southeast Asian currencies have suffered capital outflows
due to deteriorating economic fundamentals.
    U.S. durable goods orders reported their biggest drop in
nearly a year in July, but the data barely changed views that
the Fed may dial down its stimulus programme as early as next
month. 
    
    RUPIAH
    The rupiah lost 0.6 percent to 10,900 per dollar, its
weakest since April 2009, in the local interbank market.
    Traders said some corporates bought dollars above 11,000,
while the central bank was spotted selling the greenback at
lower levels, traders said.
    Jakarta stocks fell nearly 3 percent.
    Forwards markets pointed to further declines in the rupiah
with one-month non-deliverable forwards per dollar 
weakening to 11,708, its lowest since April 2009.
    The one-month offshore/onshore forward spread widened to 700
basis points, the widest since November 2008, during the global
financial crisis.
    "Some banks already placed dollar offers at 11,400-11,500
area," said a Jakarta-based traders.
    "It won't take long to reach 11,500," the trader added.
    
    RINGGIT
    The ringgit lost as much as 0.6 percent to 3.3300 per
dollar, its weakest since June 2010, on selling from foreigners.
    The Malaysian currency managed to stay firmer than the
intraday low as the central bank was spotted buying the
currency, traders said.
    Still, the ringgit is seen heading to 3.3345, the 50.0
percent Fibonacci retracement of its appreciation between 2009
and 2011, traders and analysts said.
    "Month-end dollar demand is usually strong," said an Asia
bank trader in Singapore, adding that the ringgit was expected
to weaken further.
    
    BAHT
    The baht fell up to 0.7 percent to 32.160 to the greenback,
its weakest since August 2010, pressured by capital outflows and
dollar demand from importers.
    The 10-year government bond yield rose to 4.31
percent, while the five-year yield advanced to 3.84
percent.
    The baht's slide was limited as the central bank was spotted
in the market, but it is on a falling trend, traders said.
    The Thai currency is expected to weaken to 32.425, the 50
percent retracement of its appreciation between 2009 and 2013.
    
    PHILIPPINE PESO
    The peso fell 0.4 percent to 44.445 per dollar, its softest
since January 2011, as Manila stocks lost more than 4
percent.
    Three-, five- and 10-year government bond yields 
  also rose.
    The peso is not immune to weakness in the regional
currencies, but some traders said the Philippines may see
smaller outflows than other Southeast Asian countries.
    "Yes, but I don't think it will be as much as our ASEAN
neighbours," said a Philippine bank trader in Manila, referring
to the Association of Southeast Asian Nations.
    Earlier, the central bank governor said the currency should
not suffer the fate of other regional currencies which were
caught in an emerging market sell-off recently, given the
country's sound macroeconomic fundamentals. 
    The Philippines' June imports value fell to a four-month low
with a $370 million trade deficit, compared with a $789 million
gap a year earlier, data showed on Tuesday. 
    
  CURRENCIES VS U.S. DOLLAR
  Change on the day at 0425 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen        98.32          98.50       +0.18
  Sing dlr        1.2822         1.2807       -0.12
  Taiwan dlr      29.975         30.015       +0.13
  Korean won     1115.20        1112.70       -0.22
  Baht             32.16          31.94       -0.70
  Peso             44.44          44.26       -0.39
  Rupiah        10870.00       10840.00       -0.28
  Rupee            65.37          64.30       -1.64
  Ringgit         3.3295         3.3085       -0.63
  Yuan            6.1225         6.1225       -0.00
 
  Change so far in 2013
  Currency    Latest bid  End prev year    Pct Move
  Japan yen        98.32          86.79      -11.73
  Sing dlr        1.2822         1.2219       -4.70
  Taiwan dlr      29.975         29.136       -2.80
  Korean won     1115.20        1070.60       -4.00
  Baht             32.16          30.61       -4.82
  Peso             44.44          41.05       -7.62
  Rupiah        10870.00        9630.00      -11.41
  Rupee            65.37          54.99      -15.88
  Ringgit         3.3295         3.0580       -8.15
  Yuan            6.1225         6.2303       +1.76
 
 (Additional reporting by IFR Markets' Catherine Tan; Editing by
Jacqueline Wong)

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