Asian currencies drift higher over speculation on U.S. data<\/p>\n
SINGAPORE (Agencies): Southeast Asian currencies were drifting
\nhigher against the U.S. dollar in lackluster trading late Friday.<\/p>\n
Traders said markets bereft of fresh news had kept
\nparticipants largely on the sidelines ahead of the weekend and
\nthe release of key U.S. economic data later in the global
\nsession.<\/p>\n
The Singapore dollar, Thai baht and Philippine peso
\nstrengthened slightly, as the U.S. dollar moved sideways between
\n121.40 yen and 121.70 yen during the Asian session, Dow Jones
\nreported.<\/p>\n
Only the New Taiwan dollar managed to end lower on the day,
\nalthough traders said the central bank's overt presence in the
\nmarket kept the U.S. dollar trading within a tight range.<\/p>\n
At 08:00 GMT (4:00 a.m. EDT), the U.S. dollar was trading at
\nNT$32.738, up slightly from NT$32.733 late Thursday.<\/p>\n
Against the Singapore dollar, the U.S. dollar was at S$1.7265,
\ndown a touch from S$1.7270 late Thursday.<\/p>\n
"The market is thin today as most feel the Singapore dollar's
\ndirection will be dictated by what happens in Indonesia next
\nweek," a trader at a UK bank in Singapore said. "Any major
\nviolence and we'll see a selloff in the regional currencies
\nagainst the U.S. dollar."<\/p>\n
The U.S. dollar was also trading at 38.0227 Philippine pesos
\nin late Asian trading, down from 38.0400 pesos late Thursday.<\/p>\n
"The Philippines is enjoying a clear economic recovery, and
\nthe growth is far more sustainable than growth seen elsewhere in
\nthe region," said Desmond Supple, regional economist at Barclays
\nCapital in Singapore. "A recovering economy also means there is
\nless of a need for an undervalued exchange rate. The current U.S.
\ndollar\/peso level appears competitive within the region, and that
\nis demonstrated by the country's export growth."<\/p>\n
On a three-month moving average, Philippine exports are up
\n10 percent, while other countries' export volumes have remained
\nbroadly flat, he said.<\/p>\n
Favorable May inflation figures also pave the way for "greater
\nflexibility in monetary management" in the form of further
\novernight rate cuts, Amando Tetangco, managing director of the
\nPhilippine central bank, said Friday. Inflation in May was 6.7
\npercent year-on-year, lower than the 7.9 percent rise in April.<\/p>\n
His comments are in line with central bank Governor Gabriel
\nSingson's previous statement that overnight borrowing and lending
\nrates - now at 9.875 percent and 11.875 percent, respectively -
\nwould be cut Monday if May's inflation figures turned out to be
\nlower than April's.<\/p>\n
In North Asia, the U.S. dollar was trading at 1183.9 Korean
\nwon, down from 1184.70 won late Thursday.<\/p>\n
In London, the euro single currency crashed down to a new low
\nvalue against the dollar here early on Friday, before publication
\nof U.S. jobs data that was eagerly awaited by market traders.<\/p>\n
The euro was being traded at $1.0297 here in early trading
\nfrom $1.0349 at the close of trade on Thursday, AFP reported.<\/p>\n
The currency had hit a new low point of $1.0289 on the London
\nmarket earlier in the session. Dealers said that the euro had
\nfallen as low as $1.0270 overnight on the international markets.<\/p>\n
The renewed weakness of the fledgling currency followed a
\ntentative recovery ignited by the move towards peace in
\nYugoslavia announced during the previous day's trade.<\/p>\n
A currency analyst at Paribas bank, Nick Parsons, said that
\nhopes of peace in Kosovo came as scant relief to the beleaguered
\ncurrency.<\/p>\n
With all eyes focused on euro rates, there was little change
\nin the other leading currencies. Dollar-yen rates were broadly
\nstable, but the pound followed the dollar up to a new high
\nagainst the euro.<\/p>\n
The euro was being traded at $1.0300 from 1.0349, 125.20 yen
\nfrom 125.76, 0.6410 pounds from 0.6450 and 1.5875 Swiss francs
\nfrom 1.5915.<\/p>\n
The dollar was at 121.63 yen (121.52), 1.5410 Swiss francs
\n(1.5384).<\/p>\n
Sterling was trading at $1.6080 (1.6047), 195.57 yen (195.05)
\nand 2.4777 Swiss francs (2.4687).<\/p>",
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