SINGAPORE, Oct 25 — The Indonesian rupiah and Malaysia’s ringgit led gains among emerging Asian currencies today as expectations the US Federal Reserve will maintain its bond-buying programme through early next year kept the dollar pressured.

The rupiah rose as much as 2.1 per cent to 10,910 per dollar, its strongest since Sept 2. The Indonesian currency is set to enjoy the best week in more than four years on capital inflows and demand from real money funds.

The ringgit rose on hopes the government will announce later in the day measures to cut the fiscal deficit.

Malaysia expects to meet its target of a lower budget deficit next year helped by stronger economic growth and improved tax collection, according to the government’s annual economic report.

The Singapore dollar advanced as the city-state’s industrial output in September grew faster than expected.

This week, the rupiah took top honours in emerging Asia, making the most out of the US dollar’s dour near term outlook.

The Indonesian currency has risen 2.9 per cent against the dollar, the largest weekly gain since the week ended on June 5, 2009, according to Thomson Reuters data.

The rupiah is seen as one of the most vulnerable to the Fed’s tapering due to Indonesia’s sizable current account deficit. It remains the worst-performing Asian currency of the year.

The ringgit has also gained 0.4 per cent so far this week, while the Singapore dollar has risen 0.2 per cent.

The South Korean won took a different path, turning weaker for the week with a 0.1 per cent loss after the foreign exchange authorities yesterday were spotted buying dollars after earlier warning against “excessive” won moves.

Today, Bank of Korea Governor Kim Choong-soo said the won’s recent movement have been significantly volatile. — Reuters