SINGAPORE: Asian currencies were mixed on Friday, with their near-term fortunes seen hinging on whether US jobs data coming later in the day would prompt a renewed rise in US bond yields.
The Taiwan dollar and the Philippine peso edged higher, while the Thai baht and Singapore dollar slipped.
The Indonesian rupiah eased 0.1 percent to 12,153 versus the dollar. The rupiah has fallen about 1.1 percent this week, while Indonesian bond yields have pushed higher.
A Bank Indonesia deputy governor told reporters that Indonesia's central bank will buy bonds from the secondary market if the yield rises too high in a short time.
Deputy governor Perry Warjiyo also said the central bank will intervene in the rupiah market during high volatility.
The rupiah has been hit recently by concerns that an opposition-dominated parliament could obstruct incoming president Joko Widodo's reform programme.
Most emerging Asian currencies were lower for the week, led by the South Korean won, which fell around 1.6 percent in a holiday-shortened week. South Korean markets were closed on Friday for a public holiday.
The won has retreated partly because weak economic data reinforced expectations the Bank of Korea could ease monetary policy when it meets on Oct. 15.
Emerging Asian currencies retreated broadly last month as investors positioned for the possibility that when the US Federal Reserve finally hikes interest rates, the pace at which borrowing costs will be raised could be faster than expected.
An increase in US borrowing costs and rises in US bond yields can dampen the appeal of higher-yielding currencies and assets.
Comments
Comments are closed for this article.