Most Asian currencies surge

Most Asian currencies firmed marginally on Wednesday as investors waited for the US Federal Reserve rate decision and its outlook for any further easing, while a drop in oil prices lifted units of large oil importers. The market largely expects the Fed to cut its benchmark rate by 25 basis points at its meeting late on Wednesday, marking the second rate reduction this year.
While easing at the September meeting is seen as a near-certainty, the deep divide among the Fed policymakers on further monetary stimulus has kept investors on the sidelines. "The important focus for the markets is whether Fed Chair Powell will indicate that more cuts are in the pipeline or this is another mid-cycle adjustment," Singapore-based commercial bank UOB said in a note.
The dollar index measuring the greenback against a basket of six major currencies was little changed.
The Indian rupee gained the most in the region strengthening 0.5% buoyed by easing oil prices. The currency has taken an over 1% hit since the attacks on Saudi Arabian oil facilities drove up the commodity's prices.
Saudi Arabia's energy minister said the kingdom will restore lost oil production by the end of the month. However, the risk of escalation in Middle East tensions kept markets subdued.
The Thai Baht also firmed marginally. The Philippine peso and the South Korean won, on the other hand, edged lower.
Taiwan and Indonesian central banks are set to announce benchmark rate decisions on Thursday amid expectations of monetary easing by major central banks like the US Federal Reserve and the Bank of Japan.
Indonesia's central bank is expected to cut its benchmark rate for the third meeting in a row to support growth. Ahead of the decision, the rupiah strengthened 0.1%, also supported by easing oil prices.
Meanwhile, the central bank in Taiwan is expected to leave its policy rate steady for the thirteenth consecutive quarter amid signs that the export outlook may be slowly improving.
The country had recently raised its 2019 growth forecast saying more companies were moving production to the island from mainland China to avoid the higher tariffs. The Taiwan dollar strengthened 0.2%.