Asian currencies: Taiwan dollar hits 13-year high

The Indonesian rupiah was little changed versus the dollar on Wednesday, stabilising after a recent sell-off, and the Taiwan dollar hit a 13-year high, with both currencies supported by foreign fund inflows. Traders said dollar-selling intervention by Indonesia's central bank also helped lend support to the rupiah, which has come under pressure this month as investors booked profits after a strong rally last year.
Foreign players were active sellers of the dollar against the rupiah in the spot market, said a trader for a European bank in Indonesia. The Taiwan dollar rose on the back of foreign fund inflows into the equity market, while the Thai baht rose ahead of a rate decision by its central bank. The Taiwan dollar hit a 13-year high against the dollar, as more foreign money flew into the stock market.
George Chou, deputy governor of Taiwan's central bank, told Reuters exporters should hedge against a Taiwan dollar appreciation, indicating the local currency may rise further. The Taiwan dollar hit a 13-year high T$29.056 to the dollar. After trimming some gains, the Taiwan dollar stood at T$29.100 compared to Tuesday's close of T$29.700. Indonesia's central bank sold dollars against the rupiah early on Wednesday, and the dollar's broad weakness also lent support to the rupiah.
An equities rally helped to buoy the rupiah, with Indonesian shares surging 2.3 percent, rebounding from a three-month low struck the previous day. The dollar was little changed against the rupiah at 9,045. The dollar edged up 0.4 percent against the rupiah in January as investors covered their short dollar positions to book profits in the wake of the dollar's 4.4 percent slide against the rupiah last year
The baht rose against the dollar, supported by market expectations of the central bank raising interest rates later on Wednesday. The dollar came under good selling pressure against the baht right away, in line with broad-based dollar-selling overseas.