Asian stocks fell after US banking giant J.P. Morgan reported heavy losses on mortgage and credit card loans, while the dollar firmed against the euro amid concerns about fiscal problems buffeting Greece, which has seen its budget deficit balloon and its credit ratings cut.
RUPIAH The rupiah fell in both onshore and offshore markets as risk-averse investors covered short dollar positions. "NDFs are higher due to short dollar covering, but we don't see aggressive buying," said a Singapore-based trader. One-month dollar/rupiah NDFs rise 9,260, implying a 0.2 percent rupiah fall from the spot. On the spot market, the rupiah loses 0.6 percent to 9,240 per dollar. "The market is buying dollar/rupiah in line with the region," said a Jakarta-based dealer.
A local newspaper report saying that the finance minister may be replaced by February also weighed on sentiment. Chief Economics Minister Hatta Rajasa later said Indonesia's president has no plans to reshuffle his cabinet in the near term. The high-yielding rupiah is consolidating after a nearly 3 percent rise since late December, but charts still point to a longer-term uptrend, with the currency probably testing the psychologically important 9,000 level in coming weeks.
PESO Dollar/peso NDFs gained as falling global stocks and concerns over Greece's budget woes prod investors to cover short dollar positions. "NDFs went up due to short covering but the curve remains largely stable," said a Singapore-based trader.
One-month dollar/peso NDFs rose to 46.12 from Friday's close of 45.89, implying a 0.3 percent peso fall from the spot. The spot peso shed 0.4 percent to 46 per dollar. "We see a strong dollar across the board and lower commodities as well. Dollar/peso is hitching on the trend which is most likely to last till month-end," said a Manila-based dealer. Peso supported by 20-day moving average at 46 but some traders expected it to fall towards 46.20 by month-end.