* Fed dollar swap lines ease shortage worries slightly
* Most emerging Asian units set to clock weekly losses
* Rupiah set for biggest weekly drop since April 2001
(Adds text, updates prices)
By Rashmi Ashok
March 20 (Reuters) - Most emerging Asian currencies rose
against a weaker dollar on Friday, but were set to end the week
sharply lower as a scramble for hard cash and surge in demand
for the greenback prompted investors to pare holdings in Asian
bonds and currencies.
The U.S. dollar =USD shed nearly 1% in early Asian trade
and most regional currencies rose after the Federal Reserve
opened the taps on Thursday for central banks in nine additional
countries to access the greenback. However, Asian currencies faced a double whammy over the
week from investors' flight out of regional bonds in a bid to
stay liquid and marked dollar strength due to stockpiling of the
currency.
For the session, the South Korean won KRW=KFTC climbed
nearly 3.7% in its biggest intraday percentage gain since April
2009.
The Bank of Korea was one of the nine central banks that
agreed to a currency swap deal with the Fed to help stabilise
its foreign exchange market. Singapore's central bank was part of the agreement too,
establishing a $60 billion swap facility with the Fed.
The Singapore dollar SGD= gained 0.4% but was down more
than 2% for the week.
The Chinese yuan CNY=CFXS bounced 0.5% to 7.076, helped by
Beijing's unexpected decision to keep a benchmark lending rate
unchanged. The Philippine peso PHP= climbed 1.4% and the Malaysian
ringgit MYR=MY firmed nearly 1%.
Despite the relief at the end of a tumultuous week, many are
convinced that the strength of the dollar will stay through the
pandemic.
The dollar is likely to reassert its dominance once the
correction of panic selling has run its course, wrote Jeffrey
Halley, a senior market analyst for Asia Pacific at OANDA.
"That applies equally to the major currencies, but most
especially emerging markets, where the dollar shortage will
remain a serious issue in the months to come," he said.
Sustaining losses even on Friday, the offshore Indonesian
rupiah IDR= was down nearly 9% for the week - its biggest loss
since April 2001.
Demand for the country's high-yielding bonds has plunged,
with yields on 10-year bonds ID10YT=RR rising around 86.5
basis points since the start of the week in their sharpest gain
since January 2011.
The following table shows rates for Asian currencies against the
dollar at 0626 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0626 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.960 110.69 +0.66
Sing dlr 1.447 1.4521 +0.37
Taiwan dlr 30.242 30.506 +0.87
Korean won 1248.700 1285.7 +2.96
Baht 32.570 32.61 +0.12
Peso 50.910 51.45 +1.06
Rupiah 16040.000 15900 -0.87
Rupee 74.978 75.09 +0.14
Ringgit 4.377 4.41 +0.75
Yuan 7.071 7.1119 +0.58
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.960 108.61 -1.23
Sing dlr 1.447 1.3444 -7.07
Taiwan dlr 30.242 30.106 -0.45
Korean won 1248.700 1156.40 -7.39
Baht 32.570 29.91 -8.17
Peso 50.910 50.65 -0.51
Rupiah 16040.000 13880 -13.47
Rupee 74.978 71.38 -4.80
Ringgit 4.377 4.0890 -6.58
Yuan 7.071 6.9632 -1.52