SINGAPORE: Most emerging Asian currencies eased on Monday as the dollar stayed firm after upbeat US economic data and on caution over tensions in Ukraine, while trading in the region was subdued with some global markets still closed for the Easter holiday.
The Indonesian rupiah underperformed regional units on month-end corporate dollar demand, traders said.
The dollar rose against a basket of six major currencies after US data showing new claims for benefits stayed around their pre-recession levels last week and manufacturing in the Mid-Atlantic region accelerated in April.
Asian shares edged lower amid sustained tensions in Ukraine. At least three people were killed in a gunfight in the early hours of Sunday near a Ukrainian city controlled by pro-Russian separatists.
Still, some analysts said emerging Asian currencies are unlikely to extend their declines much as regional exports may benefit from strength in the US economy.
"It may be good to add emerging Asian currencies positions little by little on dips," said Yuna Park, a currency and bond analyst at Dongbu Securities in Seoul.
"Sentiment on emerging markets is reviving and I don't see strong momentum for the dollar."
RUPIAH
The rupiah eased on dollar demand from local importers for month-end payments, traders said.
The official Jakarta Interbank Spot Dollar Rate (JISDOR), which Indonesia's central bank launched last year in an effort to manage exchange rate fluctuations, was fixed at 11,430 rupiah per dollar, weaker than the previous session's 11,418.
Currency investors almost ignored the central bank's expectations that inflation in April may slow down to a 7.2 percent rise year-on-year.
RINGGIT
The ringgit fell in thin trading, tracking its weakness in non-deliverable forwards.
Higher US Treasury yields after healthy US data may put further pressure on the ringgit, but it may find support around a 200-day moving average at 3.2506 per dollar, traders said.
A senior Malaysian bank trader in Kuala Lumpur said he would add short ringgit positions only when the ringgit weakens past 3.2600.
"There is no more risk aversion now. Ukraine is history," said the trader.
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