Asian currencies weaken

The Indonesian rupiah slid on Monday as investors took profits from its recent rally, while other regional units also weakened as the dollar firmed against major currencies while stocks faltered. The dollar edged up against a basket of major currencies, after posting its largest one-day gain in more than five months on Friday on the view that smaller-than-expected US job losses in May prod the Federal Reserve to raise rates sooner than previously expected.
RUPIAH: The Indonesian rupiah fell to 9,990 per dollar, down about 0.9 percent from its seven-month high hit on Friday, as investors took profits from its recent rally. "We should see it consolidating for now," said a trader in Jakarta.
The high-yielding rupiah, which rose past the key 10,000 level on Friday, has gained about 10 percent against the dollar so for this year - the best performing currency in Asia. Meanwhile, six-month offshore non-deliverable forwards rose to 10,305, implying a 3 percent rupiah fall from the spot compared to 2.3 percent on Friday.
The six-month NDFs traded 55 points below onshore forwards compared to 150 points in the previous session. Analysts remained bullish on the rupiah, which has been supported by fund inflows into the country's bond and stock markets in recent weeks.
"As for the rupiah, negative balance of payments pressures have subsided compared to early this year while the current and capital account have been supported by the traded surpluses and foreign capital inflows," Emmanuel Ng, strategist at OCBC Bank, said in a note.
Foreigners bought a net $205 million in Indonesian shares in the week ended June 7, trailing the purchase of just over $1 billion in Korean and in Taiwan stocks, respectively, according to data from Nomura.
RINGGIT: The Malaysian ringgit lost 0.6 percent to 3.5145 per dollar, a one-week low. "Ringgit has been following majors against the US dollar like a puppy," said a Kuala Lumpur-based trader, adding that dollar/ringgit may need to break 3.515-3.20 to go higher.
Three-month offshore NDFs edged up to 3.5145, indicating no change in ringgit from the spot compared to a 0.3 percent ringgit fall on Friday. The spread has narrowed steadily from 1.3 percent in early March. The ringgit, the worst performer in emerging Asia so far this year, has lost 1.8 percent against the dollar, reflecting the export-dependent economy's exposure to the global slowdown.