* BofA Research says Indonesian rupiah's rise
'unsustainable'
* China's May exports better than expected
* India's central bank open to further easing - minutes
June 8 (Reuters) - Most emerging Asian currencies inched
higher against a softer dollar on Monday as an unexpected jump
in U.S. employment bolstered hopes for a swift global economic
recovery from a coronavirus-induced downturn.
The promising data reduced safe-haven demand for the dollar
.DXY ahead of the Federal Reserve's two-day policy meeting
ending on Wednesday while bolstering appetite for riskier assets
like equities and emerging-market currencies. .SO MKTS/GLOB
South Korea's won KRW=KFCT and the Thai baht THB=TH
strengthened about 0.4% each, while Taiwan's dollar TWD=TP
gained 0.2%.
Several Asian countries have started easing virus-linked
restrictions in a phased manner to kick-start their economies
after weeks of lockdowns.
However, worries remain about whether this could lead to a
new wave of infections and restrictions. Indonesia and the
Philippines are two such examples, where curbs in some parts are
being eased but case loads are still rising. On Saturday,
Indonesia reported its biggest daily rise. "Given the still-elevated number of fresh daily infections
in both countries and the increased likelihood of a second wave
of infections, we expect both Indonesia and the Philippines to
see a delayed and shallow recovery with economies only returning
to form in early 2022," ING senior economist Nicholas Mapa wrote
in a note.
Indonesia's rupiah IDR=ID weakened 0.4% to 13,910 per
dollar, while the Philippine peso PHP= was flat.
The onshore yuan CNY=CFXS edged 0.1% lower but traded
around its strongest level in nearly a month as exports fared
slightly better than expected in May. Market participants are also weighing the likelihood of an
escalation in tensions between Washington and Beijing as the
U.S. election approaches.
In India, another country gradually easing restrictions, the
rupee INR=IN gained 0.1% to 75.540 a dollar.
Minutes of the Reserve Bank of India's meeting in May showed
the central bank was keeping the door open to further easing,
calling the pandemic's economic impact more severe than
initially anticipated. Markets in Malaysia were closed for a holiday.
RUPIAH'S 'UNSUSTAINABLE' RISE
The rupiah is coming off strong gains made last week which
returned the currency to pre-COVID-19 levels.
The sharp rise in recent months, due to the central bank's
efforts to reassure investors attracted to Indonesia's
high-yielding bonds, has led BofA Global Research to say the
"exuberance in IDR is unsustainable".
"We believe that the Rupiah is getting much ahead of itself
in terms of Indonesia's macro picture and such outperformance of
IDR will not be sustainable," BofA Global Research said in a
note.
CURRENCIES VS U.S. DOLLAR AS AT 0510 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.460 109.58 +0.11
Sing dlr 1.394 1.3925 -0.09
Taiwan dlr 29.731 29.839 +0.36
Korean won 1204.800 1207.1 +0.19
Baht 31.465 31.58 +0.37
Peso 49.835 49.83 -0.01
Rupiah 13910.000 13850 -0.43
Rupee 75.540 75.58 +0.06
Yuan 7.087 7.0812 -0.08
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.460 108.61 -0.78
Sing dlr 1.394 1.3444 -3.54
Taiwan dlr 29.731 30.106 +1.26
Korean won 1204.800 1156.40 -4.02
Baht 31.465 29.91 -4.94
Peso 49.835 50.65 +1.64
Rupiah 13850.000 13880 +0.22
Rupee 75.540 71.38 -5.51
Ringgit 4.265 4.0890 -4.13
Yuan 7.087 6.9632 -1.75