The Indonesian rupiah hit a one-month low on Tuesday due to fears of higher domestic inflation, while won and baht also fell. Asian stocks dipped as worries about the US economy triggered a wave of profit-taking, while the Japanese yen rose towards a 15-year high against the dollar as traders looked to test Japanese authorities' resolve on intervention. Malaysia's markets were shut for holiday.
The Indonesian rupiah shed nearly 0.4 percent to 9,045 per dollar, its lowest level in just over a month, as investors cut holdings of local bonds and stocks ahead of August infflation data due on Wednesday Offshore players appeared to be more aggressive in taking profits from local assets, traders said.
Yields on five-year government bonds jumped to 8.063 percent - the highest since mid-June. The Bank Indonesia will review policy on September 3 but most investors don't expect the central bank to start raising interest rates until the fourth quarter. The won lost 0.6 percent to 1,199.1 per dollar, tracking weaker stocks amid worries about the global economic outlook, but it found support near the 1,200 level.
"Exporters' demand cemented the 1,200 support line," said a foreign bank dealer. The Thai baht fell slightly to 31.45 per dollar as investors took profits from recent hefty gains. The baht has gained 6.5 percent against the dollar this year, including 3 percent in August alone.