EMERGING MARKETS-Asian FX slips; Indonesia, Philippine units steady after central bank decisions

By Rajasik Mukherjee

Feb 19 (Reuters) - Asian currencies slipped on Thursday, with the Indonesian rupiah and the Philippine peso unchanged after central bank policy decisions, while the South Korean shares surged to a fresh record high.

The policy decisions did little to stir markets, with both the central banks playing a straight bat: Bank Indonesia held rates steady and the Philippine central bank delivered a 25‑basis‑point cut, both in line with expectations.

The Indonesian rupiah IDR= was down 0.1% ahead of the decision and held those losses after Bank Indonesia stood pat, while the Philippine peso PHP= stuck to a 0.2% fall.

"Bank Indonesia’s decision to hold rates signals a continued focus on rupiah stability, but with IDR still near recent lows, the currency is likely to remain sensitive to global risk sentiment," said Glenn Yin, director of research at AC Capital Market.

The BSP’s cut reinforces its pro-growth stance, but the move could keep the peso under mild pressure in the near term as policy divergence and external volatility weigh on EM currencies, Yin said.

Trading volumes improved on Thursday as most Asian markets reopened after the Lunar New Year holidays, though China and Taiwan markets stayed shut.

Overnight, investors assessed minutes from the Federal Open Market Committee, which indicated policymakers were in no rush to cut interest rates, with several members open to further hikes if inflation remains persistent.

"(The minutes) raised the prospect that rates may not be cut as much as previously thought... If this becomes a trend, that's a big reason to be bullish on the US dollar and bearish on Asia FX," said Kyle Rodda, senior financial analyst at Capital.com.

The South Korean won KRW=KFTC pared some of its earlier losses to trade 0.2% lower, while the Malaysian ringgit MYR= fell 0.4%, touching its weakest level in a week.

The Thailand baht THB=TH was the lone currency trading in the green, appreciating 0.5%.

Most regional stock markets were trading higher, with the MSCI gauge of emerging Asian equities .MIMS00000PUS rising 0.6%, hitting its highest level in nearly a week.

South Korean stocks .KS11 led regional gains, rising 3% to a record high, supported by strong advances in index heavyweights.

Thai stocks .SETI climbed more than 1% to hit their highest point since early November 2024, while stocks in Singapore .STI gained as much as 1.3% to a one-week high.

Malaysian stocks .KLSE rose 0.6% while stocks in Jakarta .JKSE shed 0.6%.

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