Rupiah at six-week low

Emerging Asian currencies fell on Thursday as investors dumped riskier assets after surging Italian borrowing costs boosted fears of a eurozone break-up, while the Indonesian rupiah slid to its lowest in more than six weeks after a larger-than-expected interest rate cut. Slowing global demand also weighed on regional currencies, as China reported slower export growth and Philippine exports plunged.
Most emerging Asian currencies have retreated this month as Europe's debt crisis worsened. Spot dollar/rupiah and one-month NDF extended early gains after the central bank slashed interest rates by 50 basis points (bps), twice as much as most economists had expected.
Spot rose 1.5 percent to 9,030, the highest since September 27. Some dealers and analysts reported the central bank was intervening to sell dollars around the level. Before the rate decision, it was at 8,985. The one-month dollar/rupiah NDF rose 0.8 percent to 9,100, the highest since October 6.
US dollar/Singapore dollar rose above the 61.8 percent Fibonacci retracement at 1.2888 of its October slide on demand from interbank speculators and leveraged funds. The pair cut some gains on profit taking, but it may head to 1.3000-1.3010, a cluster of previous highs and the 76.4 percent retracement. Dollar/ringgit gained, breaking through the 61.8 percent retracement at 3.1473 of its October rises as interbank speculators chased it. The pair is seen rising to 3.1570-3.1600, previous highs, and the 76.4 percent retracement at 3.1724.
Dollar/won hit 1,137.5, a near three-week high as foreign investors posted their largest daily stick sales in seven weeks. Foreign investors dumped a net 504.9 billion Korean won ($451.9 million) in Seoul stocks, the largest daily sales since September 14. The pair cut some of the rises as exporters including shipbuilders sold it for settlements and a source said Michelin's sales of a South Korean tyre maker stake would not dollar demand.
Dollar/peso rose above a 200-day moving average of 43.235 on short covering. Earlier, it rose to as high as 43.375 after data showed Philippine exports in September fell 27.4 percent from a year earlier, biggest slide in two and a half years. But some dealers are looking to sell the pair on rallies, regarding the pair's gains as excessive. Resistance for the pair, at the 50% retracement of its October slides, is seen at 43.365.