EMERGING MARKETS-Philippine peso hits record low, Indonesian rupiah steadies after support steps

By Shivangi Lahiri

March 30 (Reuters) - The Philippine peso hit a record low on Monday and the Indonesian rupiah stopped short of touching a historic trough of 17,000 per dollar as the country's central bank introduced a new tool for banks to manage foreign-currency liquidity.

The Philippine peso PHP= hit a low of 60.776 per dollar, while stocks in Manila .PSI tumbled 2.5%, as the net oil importer grapples with an "imminent danger of a critically low energy supply." A number of oil-importing countries in the region have been hit hard by the U.S.-Israeli war on Iran, which has effectively closed off the Strait of Hormuz, a key transit point for Middle Eastern oil.

Indonesia, another oil-importing country, continues to experience massive outflows due to concerns about the impact of elevated oil prices, compounding persistent concerns over fiscal and governance risks.

Jakarta stocks .JKSE fell more than 2%, extending monthly losses to around 14% and putting them on course for their worst month since March 2020.

Foreign investors have pulled out 21.37 trillion rupiah ($1.26 billion) from Indonesia's stock markets so far this month, the largest outflow in at least over a decade, according to LSEG data.

Its currency, the rupiah IDR=, wallowed at around 16,900 a dollar, a stone's throw from its record low of 17,000.

Bank Indonesia on Monday implemented new foreign exchange repo transactions using its FX-denominated securities, providing banks with an alternative for liquidity management, particularly foreign exchange liquidity.

"The instruments function as high-quality, short-term collateral: Banks obtain the dollars they need, repay the loan when cash returns, while the collateral stays on the balance sheet," said Wei Li, head of multi-asset investments at BNP Paribas.

"The repo's market-neutral design limits immediate pressure on the IDR/USD rate, unlike a direct spot sale that would inject rupiah liquidity."

Elsewhere in emerging markets, the Indian rupee INR=IN rallied sharply to 93.85 per dollar after the central bank tightened limits on banks' foreign exchange positions.

Malaysia's benchmark stock index .KLSE dipped 1.5%, while stocks in South Korea .KS11 and Taiwan .TWII fell as much as 5.3% and 2.4%.

The conflict in the Middle East and its impact on global energy prices and supply continues to roil financial markets worldwide. Oil-importing Asian emerging economies are particularly exposed, with higher prices already triggering capital outflows and pressuring currencies.

Foreign investors have pulled 34.71 billion baht ($1.06 billion) out of Thai equities .SETI, while stock markets in South Korea and Taiwan have seen outflows worth $19.71 billion and $25.74 billion, respectively, exchange and LSEG data showed.

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($1 = 16,988.0000 rupiah)

($1 = 32.8100 baht)

($1 = 31.9940 Taiwan dollars)

($1 = 1,512.6100 won)