By Hanna Paul
Oct 3 (Reuters) - Asian currencies weakened, with the
Indonesian rupiah striking a 10-month low against a broadly
stronger dollar, after a strong readiong for U.S. factory
activity bolstered expectations that U.S. interest rates will
rise by the year-end.
The dollar index against a basket of six major rivals
was up 0.3 percent at 93.848 after touching 93.891, its highest
since Aug. 17.
Among Asian currencies, the Singapore dollar slipped
to its lowest in about seven weeks as oil prices dipped on
oversupply concerns.[]
The Indian rupee lost up to 0.6 percent ahead of a
Reserve Bank of India policy meeting this week, with the central
bank expected to stay pat on its policy rate as inflation surged
to a five-month high.
The Thai baht also dropped, touching a near 11-week
low. The strength of the baht remains a risk, the Thai National
Shippers' Council said in a statement after stating that exports
were expected to notch grwoth of up to at least 6 percent this
year.
Taiwan dollar fell to an over ten-week low.
South Korea and China markets were closed for a national
holiday.
INDONESIAN RUPIAH
Indonesian rupiah touched its lowest level in 2017 as
stronger U.S. yields and stability in the U.S. market made bonds
in Indonesia vulnerable.
"It is hard to sell the bonds right away so people sell the
rupiah as a hedge since that is a more liquid market than the
bond market," said Sean Yokota, head of Asia strategy at
Skandinaviska Enskilda Banken said.
"I also think Indonesia cut interest rates too much and the
lower real yield makes the currency weaker."
In September, the central bank slashed its key policy rate
for a second straight month as it sought to help sluggish
lending and consumption.
The following table shows rates for Asian currencies against
the dollar at 0422 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0422 GMT
Currency Latest bid Previous day Pct
Move
Japan yen 113.110 112.75 -0.32
Sing dlr 1.365 1.3613 -0.29
Taiwan dlr 30.467 30.413 -0.18
Baht 33.514 33.42 -0.28
Peso 51.195 51.08 -0.22
Rupiah 13565.000 13535 -0.22
Rupee 65.565 65.28 -0.43
Ringgit 4.239 4.232 -0.15
Change so far in 2017
Currency Latest bid End 2016 Pct
Move
Japan yen 113.110 117.07 +3.50
Sing dlr 1.365 1.4490 +6.14
Taiwan dlr 30.467 32.279 +5.95
Baht 33.514 35.80 +6.82
Peso 51.195 49.72 -2.88
Rupiah 13565.000 13470 -0.70
Rupee 65.565 67.92 +3.59
Ringgit 4.239 4.4845 +5.80
(Reporting by Hanna Paul; Editing by Simon Cameron-Moore)