Rupiah jumps as most Asian currencies up

The top US infectious disease official said Gilead Sciences Inc's remdesivir will become the standard of care for COVID-19 after early clinical trial results showed it helped patients recover more quickly from the illness caused by the coronavirus.

Asian currencies also found support in a weaker greenback after the US Federal Reserve on Wednesday left the door open to more monetary easing.

The Indian rupee firmed 1% and was set for a weekly gain after four weeks of losses.

The country recorded its 1,000th novel coronavirus death but the head of a government think-tank said on Wednesday that it was not experiencing the feared exponential surge in infections.

The Malaysian ringgit was supported by a 10% rise in oil prices on signs that the US crude glut is not growing as quickly as expected.

Meanwhile, financial markets in South Korea were closed for a holiday. Most emerging Asian foreign exchange markets will be closed on Friday for Labour Day. The rupiah hit its strongest level since mid-March, appreciating beyond the 15,000 level that the central bank had said earlier this month it would return to, and was poised for its fourth straight weekly gain.

"The IDR is seeing gains on improved risk appetite, with markets anticipating a pickup in bond inflows," said Wei-Liang Chang, macro strategist FX and Credit at DBS.

Indonesia raised 11.38 trillion rupiah ($760.19 million) at a greenshoe option bond auction on Wednesday. It will sell 856.8 trillion rupiah worth of bonds in the second quarter through to the end of the year to cover for its widening budget deficit, Finance Minister Sri Mulyani Indrawati said.

Copyright Reuters, 2020

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