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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