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Asian currencies muted on robust dollar, rupiah at 4-year low



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Indonesian rupiah hits lowest since April 2020

South Korean stocks snap a three-day rally

Taiwan shares on track for best week since early March

By Rajasik Mukherjee

June 21 (Reuters) -Most emerging Asian currencies were subdued on Friday, withthe Indonesian rupiah touching a fresh four-year low as the Federal Reserve's reluctance to cutinterest rates added pressure.

The Indonesian rupiah IDR= slipped as much as 0.3% to 16,475.00, the lowest since early April 2020, a day after Bank Indonesia (BI) kept its interest rate unchanged and saidit would fine-tune other tools to stabilise the weakening currency.

The rupiah has lost more than 6% so far this year and is among the worst performers inthe region.

"Looking ahead, BI will intervene actively in the FX market, optimise monetary instruments, and maintain strong yields to attract capital inflows," Karinska Priyatno, a fixed income analyst at Mirae Asset Securities, said in a note.

"With corporate USD demand peaking in the second quarter and subsiding in third quarter, rupiah pressure is expected to ease in the near future."

In the Philippines, the peso roseslightly on Friday, while equities .PSI declined 1.6% - their lowest level sincemid-December - ahead of the central bank's monetary policy meeting next week.

"(We are) expectingthe BSP (Bangko Sentral ng Pilipinas) to hold its current monetary policy settings. Number one driver for the BSP to move, I believe, is still what the U.S.Fed wants to do," said Ruben Carlo, chief economist at Manila-based Union Bank.

Mostother Asian currencies have declined sharply so far this year. The Philippine peso PHP=, Thai baht THB=TH, and Taiwan dollar TWD=TP have each lost more than 5%, while the Malaysian ringgit MYR= and Singapore dollar SGD= are down more than 2%.

The Thai baht inched 0.2% up as the country's finance minister is expected tomeet with the central bank governor to discuss the inflation target.

The Thai government has been pressurising the central bank to cut its interest rates in a bid toshore up Southeast Asia's second-largest economy.

Elsewhere in the region, the South Korean won KRW=KFTC was down 0.2% while equities in Seoul .KS11 lost 0.7%, breaking a three-day rally. .KS

South Korea's foreign exchange authorities said they agreed with the National Pension Service to expand a currency swap line to $50 billion from the current $35 billion to defend the tumbling won against the dollar.

The won has fallen more than 7% against the dollar so far this year.

Shares in Taipei .TWII lost 0.7% for the day, but were on track for their best week since early March.


HIGHLIGHTS:

** Indonesian 10-year benchmark yields rise to 7.152%

** India business activity grew faster in June, job creation at 18-year high, PMI shows

** Japan's demand-led inflation slows, clouds BOJ rate hike path




Asia stock indexes and currencies at 0625 GMT




COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

-0.03

-11.26

.N225

-0.09%

-15.3%

China

CNY=CFXS

-0.01

-2.25

.SSEC

-0.25

0.77

India

INR=IN

+0.07

-0.46

.NSEI

-0.06

8.38

Indonesia

IDR=

-0.18

-6.44

.JKSE

1.67

-4.67

Malaysia

MYR=

-0.08

-2.59

.KLSE

0.22

9.73

Philippines

PHP=

+0.19

-5.75

.PSI

-1.62

-3.23

S.Korea

KRW=KFTC

-0.20

-7.16

.KS11

-0.72

4.98

Singapore

SGD=

+0.08

-2.52

.STI

0.31

2.16

Taiwan

TWD=TP

-0.04

-4.96

.TWII

-0.65

29.68

Thailand

THB=TH

+0.15

-6.84

.SETI

0.56

-7.79




Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

Asian stock markets https://tmsnrt.rs/2zpUAr4


Reporting by Rajasik Mukherjee in Bengaluru; Editing by Jacqueline Wong and Sonia Cheema

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