The Indian rupee and Indonesian rupiah led declines among emerging Asian currencies today as strong US jobs data boosted worries that the Federal Reserve may soon start reducing its stimulus, prompting outflows from the region. The rupee hit a near two-month low against the dollar on weaker bonds, while the rupiah touched a near six-week low as foreign banks sold. These two currencies are seen most vulnerable to a Fed policy shift because of India and Indonesia's current account deficits. The baht broke through chart support on increasing political tensions and hit its weakest since September 18, when the Fed surprised global investors by leaving its monetary stimulus unchanged. Offshore funds dumped the Thai currency, traders said. The Philippine peso fell to a six-week low of 43.590 per dollar on selling from hedge funds. Investors rushed to cut long positions to stop losses. They had built up bullish bets on the peso on expectations of remittances and aid inflows linked to the typhoon. The South Korean won ended local trade at 1,072.5 to the greenback, its weakest since October 14 as offshore and onshore players covered dollar short positions. - Reuters, November 11, 2013.

Source