IMPORTANT Info about IDR

Story on Reuters

13:00 25May12 RTRS-EM ASIA FX-Rupiah hit by outflow fears, Asia FX head for weekly losses
SINGAPORE, May 25 (Reuters) - The Indonesian rupiah led
emerging Asian currencies lower on Friday amid fears of more
outflows from Southeast Asia's biggest economy, while other
regional units were headed for another week of losses on worries
about the Europe debt crisis and global growth.

Dollar/rupiah's one-month non-deliverable forwards
hit their highest in more than two and half years,
while the one-month offshore/onshore spread was at its widest
since September last year when Indonesia suffered from massive
outflows.

The pair's NDFs implied yield curve also deeply inverted,
indicating foreign investors are hedging against a short-term
depreciation in the currency or outflows.

The spot rupiah's indicative price weakened to
9,300 per dollar, but dealers said real market prices were much
higher than the screen price.

The Indonesian currency slid on selling by real money funds
in a thin and illiquid market, they added.

"Indonesian fundamentals do not deserve such treatment but a
given a risk-averse environment and lack of major central bank
intervention, low liquidity and past memories of the country's
travails are conspiring to weigh on the currency," said Dariusz
Kowalczyk, Credit Agricole CIB's senior economist and strategist
in Hong Kong.

The rupiah's drop in September last year had led other
emerging Asian currencies also lower.

Dollar/rupiah's one-month NDFs jumped 1.8 percent to 9,780,
the highest since September 2009.

Reminiscent of September 2011 when emerging market positions
were slashed en masse, investors are currently shrinking their
exposure to emerging bonds -- an asset class that had been until
now resilient to swirling global macro risks.

Barclays Capital said in a report citing EPFR Global Data
that in the week to May 23, emerging market dedicated bond funds
saw $478 million in net outflows, the first net redemptions in
19 weeks.

Currency market players already have shed bullish bets on
emerging Asian currencies, adding short positions in regional
units in the last two weeks, a Reuters poll showed on Thursday.
[ID:nL4E8GP11X]
The Indian rupee is this week's worst performer,
having lost 2.8 percent against the dollar. If the currency
maintains this loss, that would be the largest weekly percentage
slide since the week ended Sept. 25 last year, according to
Reuters data.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0400 GMT
Currency Latest bid Previous day Pct Move

Japan yen 79.74 79.60 -0.18
Sing dlr 1.2809 1.2766 -0.34
Taiwan dlr 29.626 29.645 +0.06
Korean won 1182.70 1180.50 -0.19
Baht 31.71 31.60 -0.35
Peso 43.95 43.74 -0.48
Rupiah 9300.00 9260.00 -0.43
Rupee 55.97 55.65 -0.57
Ringgit 3.1640 3.1546 -0.30
Yuan 6.3474 6.3447 -0.04

Change so far in 2012
Currency Latest bid End prev year Pct Move

Japan yen 79.74 76.92 -3.54
Sing dlr 1.2809 1.2969 +1.25
Taiwan dlr 29.626 30.290 +2.24
Korean won 1182.70 1151.80 -2.61
Baht 31.71 31.55 -0.50
Peso 43.95 43.84 -0.25
Rupiah 9300.00 9060.00 -2.58
Rupee 55.97 53.08 -5.16
Ringgit 3.1640 3.1685 +0.14
Yuan 6.3474 6.2940 -0.84

IDR