Rupiah leads Asia FX short-covering; won up after c.bank hol

Reuters - The Indonesian rupiah led gains among emerging Asian currencies on Thursday as investors covered short positions in regional units, while South Korea's won rose after the central bank left rates steady.

    The rupiah started the day weaker but the currency turned higher with its one-month non-deliverable forwards (NDFs) firmer against the dollar, indicating the spot's rebound. The NDFs, however, gave up most of gains after Indonesia's central bank kept its policy rate unchanged at 7.50 percent as growth slows and price pressures moderate.

    Between June and November, Bank Indonesia lifted rates a total of 175 basis points to support the rupiah. The won turned up as some investors covered bearish bets, which they had added on expectations of a rate cut this week.

    The Bank of Korea held its base rate at 2.50 percent for an eighth straight month in an unanimous vote, standing back to monitor the global effects of the Federal Reserve's tapering and a weaker yen. Offshore funds and local exporters chased the South Korean currency, although importers' dollar demand limited its gains, traders said.

    The baht edged up as offshore funds' bids prompted short-covering. The Thai currency shed some of its earlier gains on continued worries about political tensions. Malaysia's ringgit turned higher as November factory output rose more than expected. Pressure in the longer term as a solid U.S. recovery is expected to let the Federal Reserve keep trimming its bond-buying programme, analysts and traders said.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0951 GMT

  Currency        Latest bid   Previous day    Pct Move
  Japan yen           105.00             104.87           -0.12
  Sing dlr                1.2714             1.2737          +0.18
  Taiwan dlr           30.227             30.240          +0.04
  Korean won     1062.94           1064.90          +0.18
  Baht                       33.03                33.04          +0.03
  Peso                      44.68                44.70          +0.06
  Rupiah           12185.00         12225.00          +0.33
  Rupee                   62.01                62.07          +0.10
  Ringgit                3.2750             3.2760           +0.03
  Yuan                    6.0550             6.0512            -0.06
 
  Change so far in 2014
  Currency             Latest bid  End prev year    Pct Move
  Japan yen                105.00             105.28          +0.26
  Sing dlr                    1.2714              1.2632          -0.64
  Taiwan dlr               30.227              29.950          -0.92
  Korean won         1062.94            1055.40          -0.71
  Baht                           33.03                 32.86          -0.51
  Peso                         44.68                 44.40           -0.63
  Rupiah               12185.00         12160.00           -0.21
  Rupee                      62.01                 61.80           -0.34
  Ringgit                   3.2750               3.2755          +0.02
  Yuan                       6.0550               6.0539           -0.02