* Indonesian rupiah pares losses after touching near 5-month low * S.Korea, Taiwan stocks hit record high * New Thai PM to set up team to tackle strong baht (Updates for afternoon trade) By Himanshi Akhand Sept 22 (Reuters) – The Indonesian rupiah extended losses to touch a near five-month low on Monday after the central bank’s surprise rate cut last week raised concerns about its independence, while other Asian currencies weakened as the dollar firmed with investors focussing on the U.S. rate outlook. The rupiah was last down 0.1% after weakening to its lowest level since April 30 earlier in the session. Indonesian central bank Governor Perry Warjiyo said the bank would maintain its market interventions to stabilise the currency, while the country’s finance minister said the rupiah should get stronger due to capital inflows into the stock market and better domestic economic prospects. Jakarta stocks hit a record high early in the session but were last down 0.4%. Bank Indonesia’s surprise rate cut last week raised concerns that the bank was bowing to pressure from President Prabowo Subianto to prioritise growth. That, along with Southeast Asia’s largest economy facing social unrest, and fiscal worries after the abrupt sacking of a reputable finance minister, has led the rupiah to become the worst-performing regional currency this year with a near 3% drop. Poon Panichpibool, Krung Thai Bank’s market strategist, said that the rupiah could continue to stay under pressure if the greenback rises further, but more foreign inflows into Indonesian bonds, which have an attractive yield, could cap the decline. Meanwhile, in India, the rupee and stocks fell 0.1% each after the U.S. introduced a new fee structure for fresh H-1B worker visas, raising concerns about the potential impact on the country’s IT sector. Other regional currencies were also on the back foot. The dollar index was last marginally up at 97.78, as traders awaited a slew of speeches from Federal Reserve officials that could provide clues on the U.S. rate outlook. The Philippine peso edged down 0.3%. The Thai baht was largely unchanged at 31.81 per dollar. Thailand’s central bank on Friday intervened to slow the currency’s strength, which has been putting key economic drivers like exports and tourism at risk. The country’s new Prime Minister is setting up a team to address the rapid rise in the baht. The baht is up about 8% this year on the back of a weaker dollar, a current account surplus, and gold trading. Panichpibool said the baht would not fall beyond the 32-per-dollar level any time soon. Among stock markets, Taiwan equities closed up 1.2% at a fresh record high and South Korean shares also rose to their all-time high as Samsung Electronics jumped on chip optimism. HIGHLIGHTS: ** Indonesia Jan-Aug budget deficit at 1.35% of GDP, ministry data shows ** Malaysia to lower RON95 fuel price from end-Sept in subsidy adjustment ** South Korea’s President Lee says US investment demands would spark financial crisis Asia stock indexes and currencies at 0740 GMT COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS % % DAILY YTD % % Japan -0.05 +6.19 0.99 14.03 China India -0.12 -2.93 -0.10 7.01 Indones -0.06 -3.04 -0.40 13.27 ia Malaysi -0.07 +6.20 0.32 -2.38 a Philipp -0.23 +1.82 -0.79 -4.81 ines S.Korea Singapo +0.01 +6.31 -0.12 13.47 re Taiwan -0.04 +8.43 1.18 12.35 Thailan +0.00 +7.83 -0.34 -7.99 d (Reporting by Himanshi Akhand in Bengaluru; Editing by Harikrishnan Nair and Mrigank Dhaniwala)
