Asian forex: Rupiah near one-month high

The rupiah hit a near one-month high on Friday after Indonesia's highest court unanimously upheld last month's presidential election result and as most emerging Asian currencies gained as a US dollar rally lost steam. The rupiah rose as much as 0.4 percent to 11,635 per dollar, its strongest since July 25.
The Constitutional Court on Thursday rejected a last-ditch attempt by losing presidential candidate Prabowo Subianto to overturn the election result, paving the way for Joko Widodo to take over as a leader. The currency later pared its gains, however, as investors shifted their focus on the new cabinet and an expected decision on whether to reduce fuel subsidies. Local importers bought dollars for payment, while Jakarta shares retreated after hitting a record high.
"We believe that this correction in the pairing is likely to be short-lived," Maybank said in a client note, referring to the dollar/rupiah's slide. "The market's focus will quickly return to Jokowi's cabinet choices, his lack of parliamentary majority as well as his policies to deal with existing macroeconomic challenges including the persistent current account deficit among others."
Most other emerging Asian currencies rose in response to a broadly weak dollar ahead of remarks by Federal Reserve Chair Janet Yellen later in the day at the annual gathering of central bankers in Jackson Hole, Wyoming. South Korea's won and Malaysia's ringgit were also supported by demand from offshore funds, while the Thai baht advanced as investors cut dollar holdings.
For the week, however, most emerging Asian currencies eased amid concerns the Fed may raise interest rates sooner than expected and on worries about weakness in China's economy. The Chinese yuan has slid 0.2 percent against the dollar so far this week, and is set to snap a four-week winning streak after growth in the factory sector slowed to a three-month low in August. The Singapore dollar, the Philippine peso and the ringgit have lost 0.3 percent each. The baht has weakened 0.1 percent. The won rose as bids by offshore funds prompted stop-loss dollar selling. That helped the South Korean currency to have risen 0.2 percent against the greenback so far this week. Against the yen, the won rose 0.5 percent to 9.8016 to the yen, its strongest since August 2008. The Malaysian currency also rose against the Singapore dollar as investors sought higher yields.