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EM ASIA FX-Indonesian rupiah jumps about 3% on higher bond inflows expectation

Published 04/30/2020, 02:06 PM
Updated 04/30/2020, 02:10 PM
© Reuters.
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* Indonesian rupiah poised for fourth weekly gain
* Indian rupee up for week after 4 weeks of losses
* Higher oil prices lift Malaysian ringgit

(Adds text, updates prices)
By Shreya Mariam Job
April 30 (Reuters) - The Indonesian rupiah rose nearly 3% on
Thursday on expectation of a pickup in bond inflows, while most
other Asian units also firmed ahead of a long weekend as
investors cheered promising early trial results of an
experimental COVID-19 treatment.
The top U.S. infectious disease official said Gilead
Sciences Inc's GILD.O remdesivir will become the standard of
care for COVID-19 after early clinical trial results showed it
helped patients recover more quickly from the illness caused by
the coronavirus. Asian currencies also found support in a weaker greenback
after the U.S. Federal Reserve on Wednesday left the door open
to more monetary easing. The Indian rupee INR=IN firmed 1% and was set for a weekly
gain after four weeks of losses.
The country recorded its 1,000th novel coronavirus death but
the head of a government think-tank said on Wednesday that it
was not experiencing the feared exponential surge in infections.
The Malaysian ringgit MYR= was supported by a 10% rise in
oil prices on signs that the U.S. crude glut is not growing as
quickly as expected. O/R
Meanwhile, financial markets in South Korea were closed for
a holiday. Most emerging Asian foreign exchange markets will be
closed on Friday for Labour Day.

INDONESIAN RUPIAH
The rupiah IDR= hit its strongest level since mid-March,
appreciating beyond the 15,000 level that the central bank had
said earlier this month it would return to, and was poised for
its fourth straight weekly gain. "The IDR is seeing gains on improved risk appetite, with
markets anticipating a pickup in bond inflows," said Wei-Liang
Chang, macro strategist FX and Credit at DBS.
Indonesia raised 11.38 trillion rupiah ($760.19 million) at
a greenshoe option bond auction on Wednesday. It will sell 856.8 trillion rupiah worth of bonds in the
second quarter through to the end of the year to cover for its
widening budget deficit, Finance Minister Sri Mulyani Indrawati
said. Meanwhile, some parts of the country are also easing social
distancing restrictions allowing some factories to reopen.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0523 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 106.520 106.7 +0.17
Sing dlr 1.410 1.4115 +0.11
Taiwan dlr 29.830 29.951 +0.41
Baht 32.320 32.36 +0.12
Peso 50.440 50.32 -0.24
Rupiah 14835.000 15260 +2.86
Rupee 74.930 75.69 +1.01
Ringgit 4.310 4.341 +0.72
Yuan 7.054 7.0765 +0.32

Change so far in
2020
Currency Latest bid End 2019 Pct
Move
Japan yen 106.520 108.61 +1.96
Sing dlr 1.410 1.3444 -4.65
Taiwan dlr 29.830 30.106 +0.93
Korean won 1218.200 1156.40 -5.07
Baht 32.320 29.91 -7.46
Peso 50.440 50.65 +0.42
Rupiah 14835.000 13880 -6.44
Rupee 74.930 71.38 -4.74
Ringgit 4.310 4.0890 -5.13
Yuan 7.054 6.9632 -1.29


($1 = 14,970.0000 rupiah)

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