Asian currencies fail to sustain gains amid shaky fundamentals
Asian currencies fail to sustain gains amid shaky fundamentals
SINGAPORE (Dow Jones): Asian currencies were mixed late Tuesday, as the dollar's pullback against the major currencies provided some repose for the market, dealers said.
Asian currencies were, however, unable to sustain their gains as the region's shaky fundamentals kept investors wary, dealers said.
The Indonesian rupiah ended unchanged in Asian trade Tuesday in very sluggish trade. But investors still prefer to hold dollars while political instability concerns remain, traders said.
The dollar closed at Rp 9,450 in Asia, unchanged from Monday, after trading in a narrow Rp 9,435 to Rp 9,455 range.
Investors are waiting to see whether political opposition to President Abdurrahman Wahid will ratchet up pressure for his resignation in coming weeks.
Wahid, also called Gus Dur is facing attack for his alleged involvement in a number of financial scandals, and his threats last week to cut off the water supply to Singapore have given opposition more ammunition.
Any negative developments for Wahid, who's been in power for one year, could push the dollar through key resistance at Rp 9,500.
The Singapore dollar and the South Korean won were slightly stronger, but off their intraday highs.
The Philippine peso and the New Taiwan dollar were lower while the Indonesian rupiah was steady.
The Thai central bank's latest move to clamp down on speculative trading in the baht smothered interest in the currency, keeping it wedged within a tight trading band as most interbank players withdrew to the sidelines, dealers said.
But the move to restrict offshore speculative investors' access to onshore liquidity failed to spark a reversal in the baht's fortunes - the baht was slightly weaker late Tuesday.
Around 0830 GMT, the dollar was at 43.690 baht, up from 43.585 baht late Thursday.
The Philippine peso relinquished its earlier gains on renewed concerns over the possibility of prolonged political quagmire in the Philippines, after President Joseph Estrada's attempt Tuesday to dismiss the impeachment charges against him, dealers said.
The Philippine Senate heard arguments by Estrada's lawyers the impeachment charges accusing him of corruption should be dismissed on technical grounds.
But minutes after the close of trading, the Senate rejected the motion to quash the impeachment case for lack of merit. The dollar closed at 49.520 pesos on the Philippine Dealing System, up from 49.410 pesos at the previous close.
Slower remittances from overseas workers and increased corporate demand for dollars also pressured the peso, dealers said.
Against the Singapore dollar, which tracked the other currencies, the U.S. unit slid to as low as S$1.7515 in early trading, before slowly recovering to S$1.7545 late in the day.
Late Monday, the U.S. dollar was higher at S$1.7558, following the yen which lost some ground.
Elsewhere, dollar-selling by local exporters and foreign equity investors contributed to the South Korean won's gains, dealers said.
The dollar finished at 1,184.70 won, down from Monday's close of 1,186.50 won.
In contrast, corporate month-end demand for the U.S. currency, as well as lingering worries over a slowing economy and domestic political bickering dented the New Taiwan dollar, dealers said.
The U.S. dollar closed at NT$32.928, up from NT$32.878 Monday.