Most Asian currencies were steady on Monday, trapped in fairly tight ranges, as investors pondered whether almost three weeks of selling in emerging markets was over.
The Indonesian rupiah was sold off briefly on concerns about how Saturday's earthquake, which killed more than 5,100 people and destroyed thousands of homes around the city of Yogyakarta, would impact the economy.
But dealers said the impact on the rupiah was not marked, while trade in Asian currencies was generally lacklustre due to holidays on Monday in Britain and the United States.
The Singapore dollar was quoted around 1.5790 per US dollar, close to the middle of a range it has traded since May 10, when the sharp selling of emerging market equities and currencies began.
The South Korean won was about 0.2 percent lower at about 947 per dollar, close to the month's weakest mark of 954, struck two weeks ago.
The rupiah fell about half a percent to 9,280 per dollar but had recovered losses by late trade to stand at 9,215, slightly firmer than where it stood in late Asia trade on Friday.
Some traders said they would wait to see how far the earthquake would impair government finances, while others said the rupiah would not suffer.
Indonesia's central bank said on Monday the country plans to repay half of its $7.8 billion in loans owed to the International Monetary Funds "within weeks" and the rest next year.
"The news this morning about the early repayments to the IMF are rupiah positive," said a Jakarta trader. "There is support for the rupiah in the 9,250/55 area."
The rupiah was one of the most volatile Asian currencies this month, as foreigners pulled out the heavy amounts they had pumped into Indonesian equities and high-yielding bonds.
"What's important is to watch emerging market risk and what is going on with equities," said Jimmy Koh, head of economics and treasury at United Overseas Bank in Singapore.
"It is difficult to tell when emerging market risk will end, but if the market is willing to go into Latin American currencies they will probably come back into Asian markets."
Indonesian stocks and some of the other regional bourses firmed on Monday, lending support to local currencies.
"After what was a record post-financial crisis outflow from the Asian markets over the last fortnight - a total of $10.9 billion were withdrawn from Thailand, Taiwan, Korea, Indonesia, India and the Philippines - we expect some improvements this week given the improved sentiment," analysts at UBS said in a note.
Worries about further foreign fund outflows, however, continued to weigh on the Indian rupee, which fell to about 46.08 per dollar - a new 2006 low.
The Malaysian ringgit firmed about 0.4 percent to 3.6295 per dollar. One Kuala Lumpur trader said the gains were exaggerated by thin trading volumes, while others said expectations for further rate increases bolstered the currency.
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