The Indonesian rupiah firmed on Thursday, catching up with regional peers after a holiday, while the Singapore dollar was stuck in a tight range amid caution over possible official intervention. Most Asian currencies eased as the dollar rebounded against majors while stocks fell after the Federal Reserve indicated it was closer to pulling back on extraordinary stimulus measures while reiterating a pledge to keep rates very low.
RUPIAH: The rupiah rose 0.6 percent to 9,630 per dollar at one point, although gains were tempered by local corporates buying of dollars for month-end settlements, traders said. The high-yielder, the best performing currency in Asia, has rallied 14 percent against the dollar since the start of 2009.
Meanwhile, the dollar rosed against the rupiah in offshore forward markets, reflecting its firmer tone against major currencies. Three-month dollar/rupiah NDFs edged up to 9,755, implying a 1 percent rupiah fall from the spot. "There has been some dollar buying in line with its broad-based momentum," said an NDF trader.
SINGAPORE DOLLAR: The Singapore dollar moved between 1.4135-1.4175 per US dollar as investors tread cautiously amid jitters of possible official intervention to curb the unit's strength.
The Singapore dollar, which hit a one-year high of 1.4078 on Wednesday, has rallied almost 10 percent since early March, buoyed by fund inflows as optimism about the global economy grew. "Good profit taking (on US dollars) this morning from those who were long yesterday, but there were strong bids at the 1.4150 level," said a Singapore-based trader. "We reckon the Singapore dollar will be stuck at 1.4150-70 till Londoners come in," added the trader.
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