Indonesia's rupiah gains on high bond yields; Asian FX steady after Fed hold
TLT•The rupiah rose as Indonesia's 10-year bond yield held at 7.707%, its highest since mid-May 2020, while Jakarta stocks fell 2.5%. Asian currencies broadly strengthened after the Federal Reserve left interest rates unchanged, but emerging Asian equities fell more than 1%.
1. Rupiah firms as yields hold high
Indonesia's 10-year bond yield held at 7.707%, its highest since mid-May 2020 and more than 150 basis points higher this year. The elevated yields helped the rupiah pull away from record lows it neared earlier in the week. Jakarta stocks fell 2.5%.
2. Asian currencies gain
Asian currencies broadly strengthened after the Federal Reserve left interest rates unchanged. The South Korean won rose 0.5% and the Malaysian ringgit gained 0.3%; the Philippine peso climbed 0.1%, recovering from a record low touched Tuesday.
3. Regional stocks retreat
The MSCI gauge of emerging Asian equities fell more than 1%, with South Korean stocks down more than 2% and Taiwan's market down 1.9%. Samsung Electronics fell 4.8% after reporting earnings below analyst expectations, while TSMC declined more than 1%.
