Ringgit gains as inflation ticks up, Asia currencies rise

SINGAPORE, April 22 (Reuters) - Emerging Asian currencies
rose on Wednesday as the dollar retreated slightly, while
Malaysia's ringgit extended gains  after March inflation data
cooled any lingering expectations of a rate cut there. 
    The Indonesian rupiah rose on suspected
intervention, while the South Korean won advanced as
continued foreign inflows powered Seoul shares to a
four-year high.
    Taiwan's dollar gained on exporters' demand for
settlements.
    The U.S. dollar pulled back against six-major
currencies with the Australian dollar up after
inflation data indicating an interest rate cut was not imminent.
 
    Investors however remained wary of a possible rebound in the
greenback, especially ahead of the U.S. Federal Reserve's
monetary policy meeting next week.
    "Still see a state of consolidation for now," said
Christopher Wong, a senior currency analyst at Maybank in
Singapore, referring to emerging Asian currencies.
    "But over the medium term, bias is to buy the dollar on dips
against Asia ex-Japan currencies."
    
    RINGGIT
    The ringgit rose as much as 0.7 percent to 3.6110
per dollar after data showed Malaysia's consumer price index
 in March edged higher to 0.9 percent from a year
earlier.
    "We are at the cusp of (marginally) higher inflation largely
on supply-side dynamics," said ANZ bank economists in a note. 
    The economists expect Bank Negara Malaysia (BNM) to pause
through 2015.
    "With BNM viewing the MYR as undervalued, monetary easing
will further weaken the currency and possibly exacerbate capital
outflows."
    The currency's non-deliverable forwards advanced
while most government bond prices gained. 
    Still, some traders looked to sell the ringgit on rallies as
oil prices extended declines with Middle East tensions easing
after Saudi Arabia ended a military campaign in Yemen.
    Malaysia is a net oil exporter and lower crude prices are
seen hurting the country's current and fiscal accounts.
    
    RUPIAH
    The rupiah rose as the central bank was spotted intervening
to support the worst-performing Asian currency so far this year.
    Offshore funds bought the Indonesian currency in NDFs
 markets with most government bond prices up.
    
    WON
    The won edged up as foreign investors were set to become net
buyers in Seoul's main stock market for a 12th consecutive
session.
    Foreigners bought a combined net 3.3 trillion won ($3.1
billion) worth of shares during the period, the Korea Exchange
data showed.
    But traders were reluctant to chase the won further with the
foreign exchange authorities suspected of intervening to stem
its strength.
    The won advanced to 9.0258 against the yen, its
strongest since February 2008. That added to concerns that South
Korea's exporters may lose price competitiveness against Japan's
rivals in overseas markets.

original source: http://in.reuters.com/article/2015/04/22/markets-asia-forex-idINL4N0XJ18R20150422