Emerging Asian currencies slid versus the yen although the Bank of Japan delivered its third dose of monetary stimulus in four months earlier in the day, a suspected prelude to more aggressive action next year. "Investors adjusted positions to book profits after the BOJ's easing before the year-end and they got what they have wanted to some degree," said Jeong My-young, Samsung Futures research head in Seoul.
Regional units have risen against the yen as the Bank of Japan is expected to take bold monetary policy measures in the face of intensifying pressure from the incoming prime minister to beat deflation. On Wednesday, the Singapore dollar hit 1.4397 to 100 yen, its strongest since October 2008. The rupiah fell as Indonesian local banks bought dollars on behalf of local corporates.
Rupiah market prices against to the dollar were weaker than indicative prices, but the central bank was spotted preventing further depreciation, dealers said. The rupiah slid 0.2 percent to 9,665 to the dollar on tradings screens, but dollar bids were placed at around 9,740-9,750, according to Jakarta-based dealers. Bank Indonesia sold dollars below 9,700, they added.
The Singapore dollar slid on selling from macro accounts and the central bank was spotted buying US dollar through agent banks around 1.2190, dealers said. The city-state's currency also came under pressure from option-linked selling between 1.2180 and 1.2185 to the dollar, but it found some relief on corporate demand around 1.2220. The ringgit eased on fixing-related dollar demand, dealers said, while local pension funds looked to buy the greenback at below 3.0600 to the Malaysian currency.