EM Asia fx higher ahead of FOMC

 The Indonesian rupiah appreciated 0.1 percent against
the dollar after manufacturing activity improved for the second
straight month in April to hit a 10-month high.
    The Indian rupee strengthened for a second day
after a business survey showed that Indian manufacturing
activity expanded for a fourth consecutive month in April,
helped by stronger growth in new orders.
    "The manufacturing PMI prints from Asia was mostly upbeat
and well in the expansion territory, suggesting that the
manufacturing momentum still had room to extend in Q2," OCBC
Bank said in a note. 
    Among other currencies, the Taiwanese dollar was
firmer for a second day, rising 0.1 percent to hit its highest
since Sept. 2014.
    Taiwan's central bank said it sees volatility in the local
currency against the U.S. dollar as "unavoidable" and urged
local companies to be vigilant about currency
hedging.
    Markets are also keeping a close eye on the Fed's policy
statement for hints on the U.S. interest rate outlook.
    The Fed is widely expected to keep interest rates unchanged
at the end of its two-day policy meeting on Wednesday, but
investors will look to see whether the central bank downplays
the recent soft patch in the economy to leave the door open for
a rate increase in June.
    "The Federal Open Market Committee should provide some
interest but will offer little in the way of a surprise with the
market more focused on the language surrounding June," Stephen
Innes, senior trader at OANDA said.

Reuters

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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