Most emerging Asian currencies rose on Thursday as dismal US industrial production data bolstered expectations of a delay in the Federal Reserve's interest rate increase, hitting the dollar. The Malaysian ringgit outperformed on demand from offshore funds. A jump in oil prices eased concerns about the country's current and fiscal accounts. Malaysia is a net oil and gas exporter.
South Korea's won rose to its strongest in more than a week on continuous stock inflows.
The Indonesian rupiah hit a near two-month high as the central bank was spotted buying to support the currency, traders said. Some offshore hedge funds purchased the currency in non-deliverable forwards markets.
The dollar was broadly lower, losing ground against a basket of six major currencies, following the weak output data.
US industrial output suffered its biggest drop in more than 2-1/2 years in March, partly due to plummetting oil and gas well drilling.
"The weak production data boosted expectations of a delay in a US interest rate hike and lifted Asian currencies," said Jeong My-young, Samsung Futures' research head in Seoul.
"Asian currencies have more room to rise, as the dollar is seen correcting further. We may see a weak first-quarter growth number," said Jeong, referring to the US economic growth data due on April 29.
RINGGIT
The ringgit jumped 1.7 percent to 3.6460 per dollar, tracking its strength in the NDF market.
Daily-fixing related demand prompted local traders to scramble for the ringgit.
The Malaysian currency found further support from demand against the neighbouring Singapore dollar.
The ringgit pared some of earlier gains on dollar demand from local corporates.
The won advanced as much as 0.9 percent to 1,087.5 per dollar, its strongest since April 7.
Offshore funds bought the South Korean currency with foreign investors set to become net buyers in Seoul shares for an eighth straight session.
Foreign investors bought a combined net 1.85 trillion won ($1.70 billion) worth of stocks during the period, the Korea Exchange data showed.
Local importers bought the dollar for payments on dips, limiting the won's upside, traders said.
The rupiah gained as much as 0.8 percent to 12,800 per dollar, its strongest since February 24.
The Indonesian currency on Wednesday closed the local market at 12,896, strengthening past chart resistance at 12,921 - the 55-day moving average. The currency had been weaker than the average since September 2014.
With the break, the rupiah has room to strengthen further to 12,773, the 23.6 percent Fibonacci retracement of its depreciation from March 2014 to last month, analysts said.
Still, it is premature to expect the rupiah to reverse its depreciation trend as the retracement would run into solid resistance, analysts added.
Most government bond prices rose with the 10-year debt yield up to 7.389 percent, its highest since April 6.
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