BENGALURU: Emerging Asian currencies weakened on Wednesday and equities moved narrowly in thin holiday-curbed trade, with the rupiah under pressure a day ahead of Bank Indonesia’s policy meeting.
Volumes were thin across the region with markets in China, South Korea, Taiwan, Malaysia, and Singapore all closed for holidays.
“Asian FX softness today is largely a function of thin, holiday-hit liquidity, which has made regional currencies more vulnerable to even modest order flows,” said Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines.
“The rupiah remains under pressure amid lingering fiscal concerns and sensitivity to dollar moves.” The Indonesian rupiah, one of the region’s few actively traded currencies on the day, depreciated 0.3 percent, after it resumed trading following a long holiday-weekend. A Reuters Poll showed that Bank Indonesia (BI) would most likely stand pat on rates for a fifth straight meeting, as the rupiah comes under renewed pressure.
The currency has lost just over 1 percent in 2026, making it the region’s worst performing currency so far this year.
Indonesian stocks rose 1 percent on the back of stronger moves across the industrials and utilities sectors, which gained over 2 percent each.
The Philippine central bank’s rate decision is also due February 19. The market sees the central bank lowering rates by 25 basis points, where they are expected to stay for the rest of the year.
“What will matter for markets is the forward guidance…A steady, predictable tone would keep USD/PHP trading within its recent range, with the larger FX impulse coming only if guidance turns unexpectedly dovish,” added Ruben Carlo.
The Philippine peso had fallen around 0.2 percent in early trade but pared losses to trade flat, while equities were 0.2 percent higher.
