* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Indonesia benchmark bond yield drops
* Malaysia cenbank keeps rates steady
* Increase in Asia's virus cases to dent FX appeal - analyst
By Anushka Trivedi
May 6 (Reuters) - The Indonesian rupiah hit a seven-week
high on Thursday as the country's bonds stayed in demand, while
all other Asian currencies languished against a dollar buoyed by
brightening growth prospects in the world's biggest economy.
The greenback USD= built on momentum stemming from
encouraging economic data and higher inflation raising chances
of a rate hike, sending Singapore's dollar SGD= , the Thai baht
THB=TH and South Korea's won KRW=KFTC lower by 0.1% to 0.4%.
"The U.S. dollar looks like has found a floor and that
suggests Asian currencies will largely be on the back foot,"
said Mitul Kotecha, chief EM Asia & Europe strategist at TD
Securities.
"The increase in virus cases across much of the region is
also likely to dent support for Asian currencies."
However, Kotecha and several analysts pointed to investor
appetite for high-yielding debt markets like Indonesia to keep
its currency IDR= supported.
The rupiah jumped 0.8%, while the country's benchmark bond
yields ID10YT=RR were down 1.9 basis points at 6.458%. The
10-year yields have declined 43.6 basis points since their March
highs.
Even with the pandemic's impact on Southeast Asia's largest
economy, "the rupiah is set to receive support from foreign fund
inflows, especially if the global hunt for yields persists",
said FXTM market analyst Han Tan.
Meanwhile, Kuala Lumpur stocks .KLSE hit a six-month low
and the currency MYR=MY eased 0.2% as fresh two-week curbs in
the capital added to lockdowns already in place in economically
prosperous regions of the country. Bank Negara Malaysia (BNM) left the benchmark interest rate
unchanged at a record low of 1.75%, as expected, and said it was
seeing improvements in activity, with vaccination expected to
drive a rebound. Goldman Sachs analysts expect BNM to keep rates on hold for
the rest of the year as the economic hit from the latest
lockdown measures is expected to be less pronounced than
previously.
HIGHLIGHTS
** Singapore shares .STI firm 0.7% after four days of
losses
** China stocks .SSEC slip 0.2% on resuming trade after
holidays this week
** India reported more than 400,000 coronavirus infections
over the last 24 hours, taking the total tally past 21 million
Asia stock indexes and currencies at 0801 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan JPY= -0.15 -5.58 .N225 1.80 6.88
China CNY=CFXS -0.02 +0.81 .SSEC -0.16 -0.92
India INR=IN +0.06 -1.09 .NSEI 0.68 5.26
Indonesia IDR= +0.80 -1.92 .JKSE -0.09 -0.15
Malaysia MYR= -0.12 -2.43 .KLSE -0.44 -3.59
Philippines PHP= +0.03 +0.13 .PSI -0.27 -12.00
S.Korea KRW=KFTC -0.28 -3.52 .KS11 1.00 10.62
Singapore SGD= -0.09 -1.15 .STI 0.72 11.70
Taiwan TWD=TP -0.11 +1.76 .TWII 0.90 15.35
Thailand THB=TH -0.35 -4.01 .SETI 1.44 8.43