Asian currencies down late as yen slides to 3-week lows
Asian currencies down late as yen slides to 3-week lows
SINGAPORE (Dow Jones): Asian currencies suffered another round
of bruising late Thursday as the dollar extended its rebound
against the yen to hit three-week highs.
But the dollar's achievements against its Asian counterparts
were relatively modest compared with its sharp ascent versus the
yen, amid doubts over the sustainability of the dollar's rise in
the short term, dealers said.
News that Moody's Investors Service placed its rating on
Japanese sovereign debt on negative review for a downgrade
provided more fuel for the dollar's rise to around 121.50 yen
At 0850 GMT (3.50 p.m. Jakarta time), the dollar was quoted at
121.13 yen, above 120.67 yen late Wednesday in New York. The
dollar was at 119.73 yen late Wednesday in Tokyo.
The dollar also drew its vigor from U.S. Treasury Secretary
Paul O'Neill's reaffirmation Wednesday of Washington's strong
dollar policy. Ahead of his meetings with Asia-Pacific Economic
Cooperation finance ministers in China Friday, and the Japanese
finance minister in Tokyo Sept. 12, his remarks stoked
speculation of coordinated intervention to further weaken the
yen.
The Indonesian rupiah closed slightly higher in thin dealing
Thursday on profit-taking against the dollar amid a lack of fresh
leads to trade on, dealers said.
The dollar closed at Rp 9,030, down from its close Wednesday
at Rp 9,070.
Dealers said market participants unwound their long dollar
positions as demand from local companies subsided.
"Dollar demand from local companies was very meager in the
last two days (and) the dollar lost steam," said a dealer with a
foreign bank. "There were no fresh news either to trade (on)."
Dealers added that Bank Indonesia didn't intervene Thursday to
help the local unit.
The dollar is expected to trade in a narrow range of Rp 9,000
and Rp 9,150 Friday due to a lack of fresh incentives, dealers
said.
The Singapore dollar, which has recently been the most
sensitive to the yen's fluctuations compared to its regional
peers, felt the brunt of the Japanese currency's slide, as it
slumped past the psychologically important S$1.7500 support
level.
The U.S. dollar was at S$1.7513, compared with S$1.7463 late
Wednesday.
Earlier, corporate sell orders for U.S. dollars around $1.7550
and long liquidation of the U.S. currency by U.S. names had
stymied the U.S. dollar's advance, dealers said.
The Thai currency fell under the sway of the tottering yen and
the Singapore dollar, weakening past 44.500 baht to the dollar,
dealers said.
Exporter dollar sales around 44.550 baht-44.600 baht and the
U.S. currency's pullback from its intraday highs, however, helped
the baht recoup part of its earlier losses, dealers said.
At 0945 GMT (4.45 p.m. Jakarta time), the dollar was at 44.480
baht, higher than 44.285 baht late Wednesday.
With South Korea's foreign exchange participants fixated with
the yen's movements, the won barely reacted to the Bank of
Korea's decision to leave its one-day call rate unchanged at 4.50
percent. Most economists had expected a rate cut.
The dollar finished at 1,286.9 won, up from Wednesday's close
of 1,282.0 won.
The New Taiwan dollar suffered a double whammy from the yen's
fall and a 2 percent slide on the local stock market, dealers
said.
The U.S. dollar ended at NT$34.616, higher than NT$34.578
Wednesday, in dealings valued at US$420 million.
The central bank, which regularly intervenes to smooth any
currency volatility, sold a relatively modest US$10 million
during the session.
On the Philippine Dealing System, the dollar closed at 51.335
pesos, up from 51.170 pesos Wednesday.