Asian currencies end mixed as yen swings up
Asian currencies end mixed as yen swings up
SINGAPORE (AFP): Asian currencies ended mixed on Friday as the
Japanese yen traded erratically, with the Indonesian rupiah
rebounding on profit-taking ahead of a weekend announcement on
bank restructuring.
The rupiah closed around 9,150 per dollar, from a low of
9,600, after dropping sharply the previous day to 9,450 amid
political uncertainty in Jakarta in the run-up to the June
general elections.
There was some profit-taking by U.S. and Indonesian players
after Thursday's sharp dollar rise, said a chief dealer with a
European bank in Singapore.
He said there were also rumors that owners of Indonesian banks
were selling dollars ahead of an expected announcement Saturday
in Jakarta regarding which local banks will be allowed to
recapitalize, and which will be liquidated.
"The owners have to raise cash for them to be included in the
banks that will be allowed to operate," the dealer added.
During the day the yen traded wildly, hitting a low of 120.45
per dollar, as players assumed that the Bank of Japan (BoJ) would
further ease monetary policy. Many were caught by surprise when
the BoJ left the discount rate of 0.5 percent untouched.
The yen closed trading here around 119.95, still down from
119.17 yen in New York late Thursday.
The BoJ's policy board said it would continue to hold down
short-term interest rates, which have fallen effectively to zero
in recent weeks.
The Singapore dollar rebounded to 1.7335 per U.S. dollar from
1.7350 the day before. The Thai baht slightly rose to 37.35 from
37.55, and the Taiwan dollar to 33.112 from 33.114, after earlier
trading lower.
The baht strengthened after Thailand's Senate on Friday
approved the passage of new foreclosure legislation regarded as
crucial to healing the shattered economy. A bankruptcy bill was
also being debated.
The South Korean won was unchanged at 1,233 per dollar, while
the Philippine peso eased slightly to 38.97 from 38.905.
The Taiwan dollar rose slightly against the greenback Friday
amid central bank intervention toward the end of the session,
dealers said.
The currency closed at 33.112, after trading between 33.180
and 32.950.
In London, the euro lost newly gained ground early Friday in
London as investors brushed aside some of the recovery prompted
by the resignation of controversial German finance minister Oskar
Lafontaine.
The euro traded at 1.0934 dollars in mid-morning, compared to
1.0982 in opening trading in London and a high of 1.1040 dollars
late in New York overnight.
Although back under the 1.10 dollar level, the euro remained
higher than the 1.0817 dollars it traded at in London on Thursday
before Lafontaine's resignation.
The departure of Lafontaine, disliked by the markets for his
socialist policies and tussles with the European Central Bank
over the euro, had given a needed boost to the single currency,
outweighing the dollar-strengthening effect of the latest healthy
U.S. retail sales figures.
The dollar was also lifted by the record close of Wall Street,
where the Dow Jones index rose 1.27 percent.
The euro traded at 1.0934 dollars (1.0817), 130.98 yen (130),
0.6712 pounds (0.6652), 1.5989 Swiss francs (1.5950).
The dollar traded at 119.80 yen (120.15) and 1.4631 Swiss francs
(1.4733).
The pound traded at 1.6359 dollars (1.6259), and 195.98 yen
(195.45), 2.3931 Swiss francs (2.3976).
The spot gold price was 293.60 dollars (293.05) an ounce.