Won, rupiah dip

The South Korean won dipped after a dovish statement from Bank of Korea suggested rates would stay on hold this year while Indonesian rupiah also took stride after Indonesia's central bank kept its benchmark policy rate on hold. The dollar rose broadly against emerging Asian currencies, gaining momentum especially after a surprise decline in Australian employment pulled the Aussie lower against the greenback.
Asian currencies have fallen this week on renewed jitters over the eurozone's sovereign debt crisis, and on concerns that their economies may increasingly feel the pinch from a slowdown in developed economies. South Korea's central bank left its key rate on hold at 3.25 percent for the third successive month as widely expected. The central bank, however, said inflation is seen easing gradually and added "financial, economic risks" to its factors to watch and the won dipped on its statement.
Indonesia's central bank kept its benchmark policy rate on hold at 6.75 percent as expected, but said it widened the floor of its interbank overnight rate to 150 basis points below its policy rate from 100 basis points below. The central bank said the widening of the floor was conducted to "push activities in the interbank market amid huge excess liquidity".
The rupiah seemed to take the announcement in stride. While some said it may effectively be an easing measure, others said it seemed like a technical move. The rupiah had fallen against the dollar ahead of the central bank decision, with traders citing dollar-buying by offshore banks, possibly outflows related to maturing SBI - short-term bills issued by Indonesia's central bank.