Asian monies mixed as weakness persists<\/p>\n
HONG KONG (Dow Jones): Asian currencies are mixed in late
\nWednesday trading as afternoon profit-taking brought some respite
\nfrom the U.S. dollar's relentless gains.<\/p>\n
The Korean won is higher after climbing back from its lows of
\nthe session as the stock market in Seoul recovered some of the
\nground it lost in a downturn earlier in the day. The Indonesian
\nrupiah was also up slightly on the day.<\/p>\n
But as Nasdaq jitters continue to unnerve regional bourses,
\nreminding the foreign exchange markets of the great uncertainty
\nbuilding up around the U.S. economy and interest rate hikes,
\nplayers say more weakness is in store for the Asian currencies.<\/p>\n
"Investors don't want to put money in riskier assets," said
\nRebecca Patterson, Asian market strategist with J.P. Morgan.<\/p>\n
Last week's half-point rate hike has got the markets spooked
\nand the tendency for currencies will be lower until some U.S.
\ndata come along to suggest less forceful policy at the U.S.
\nFederal Reserve.<\/p>\n
On the trading floors, a dealer with a U.S. firm said "the
\nKorean won and the (Philippine) peso have been the leaders this
\nsession."<\/p>\n
He said some profit takers emerged in the afternoon session as
\nit got expensive to hold such long U.S. dollar positions against
\nthe South Korean currency. It was trading at 1132.6 won late,
\ndown from 1134.40 won late Tuesday and a high over 1139.00 won
\nearlier.<\/p>\n
The trader said it is difficult to pick a range for the won
\n"because it is really driven by sentiment" at the moment, but
\nadded that the dollar is likely to hold above 1130.00 won.<\/p>\n
Against the peso, meanwhile, the U.S. dollar was trading at
\n42.85, up from 42.37 pesos late Tuesday and from 42.80 pesos
\nearlier in the morning session, apparently unmoved by comments of
\nsupport from the Philippines central bank.<\/p>\n
Philippine Central Bank Governor Rafael Buenaventura said
\nWednesday a further rise in overnight rates - possibly by 0.50
\npercentage point - is being considered.<\/p>\n
Patterson at J.P. Morgan, said, however, that from the
\nmarket's perspective what will be required to provide greater
\nstability to currency is stability at the government level.<\/p>\n
Philippine central bankers have already jacked up rates 100
\nbasis points last week to prop up the currency and its not yet
\nhelped much. "It's a very messy market and spreads have widened
\nout considerably," said the dealer in Singapore.<\/p>\n
The U.S. dollar was trading around Rp 8,460.00 late in the
\nsession, meanwhile, up from Rp 8,455.00 late Tuesday. "We've been
\nseeing some onshore selling (of U.S. dollars) at these levels,"
\nhe said.<\/p>\n
The Thai baht, meanwhile, was also down a touch at 39.275 baht
\nto the U.S. dollar, from 39.265 baht late Tuesday.<\/p>\n
The U.S. currency is quoted at S$1.7347, up from S$1.7319.
\nAnalysts said news that Singapore's inflation rate in April was
\n1.1 percent, down from 1.2 percent in March, suggested the
\ncentral bank can keep monetary policy steady, and as a result has
\nlittle incentive to favor a stronger currency.<\/p>\n
Against the Taiwan dollar, the U.S. currency was trading at
\nNT$30.825, up from NT$30.749 late last session.<\/p>",
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