The Philippine peso led Asian currencies higher on Monday after better-than-expected US jobs data boosted risk-taking, prompting central banks in Thailand and Indonesia to intervene to temper the rise in their currencies. Asian stocks touched one-month highs as investors saw the jobs data, which was not as bad as some had feared, as a ray of hope that the world was not going to slide back into recession.
The dollar dipped and looked poised to test a 15-year low against the yen, although caution about Japanese intervention deterred further yen buying. The peso rallied 0.7 percent to 44.38 per dollar, the highest since late April, in tandem with local stocks. Dollar/peso non-deliverable forwards dropped across tenors, with one-month NDFs falling to 44.46 from 44.82 late on Friday.
Dollar/peso selling was particularly heavy at the short-end of the curve, traders said. The high-yielding rupiah gained nearly 0.4 percent to 8,970 per dollar, piercing through the 9,000 resistance, on increased fund inflows buoyed by favourable US payrolls data on Friday. Dealers expect the rupiah to move 8,970-8,990 for the day, with trading thinned by US holiday.
The Thai baht gained nearly half of a percent to 31 per dollar, a 30-month high, despite dollar-buying intervention by Bank of Thailand, traders said. The baht has gained just over 7 percent against the dollar this year, the third-best Asian performer after the yen and ringgit.