Asian currencies fall against U.S. dollar
Asian currencies fall against U.S. dollar
SINGAPORE (Dow Jones): The Korean won continued to fall
against the U.S. dollar during Asian trading hours Thursday, as
continuing bad news battered the local stock market and raised
concerns that hoped-for financial and corporate restructuring
would not materialize.
Korea's Kospi index also fell below 900 points to 898 for the
first time since July, following news that officials of the
Hyundai Group were not allowed to leave the country until an
investigation about potential stock manipulation was completed.
At 0800 GMT (4:00 a.m. EDT) the U.S. dollar was trading at
1190.7, up from 1184.70 late Wednesday. "The won still surprises
me given the negative sentiment in the stock market and the
negative noise about Daewoo and Hyundai," said the head trader of
foreign exchange trading at a U.S. bank in Singapore.
In other Asian markets, the Thai baht, Singapore dollar,
Philippine peso and Indonesian rupiah all fell against the U.S.
dollar in quiet trade, dealers said.
The Thai baht also continued to slip against the U.S. dollar
Thursday, after falling to an 11-month low Wednesday. While
trading activity had been volatile and hectic Wednesday,
Thursday's market remained subdued as traders tried to fathom the
reason for the baht's sudden decline. At 0800 GMT (4:00 a.m.
EDT), the U.S. dollar was trading at 38.8900, well up from 38.76
late Wednesday and above the 11-month high of 38.86 baht reached
during intraday trading Wednesday.
On the Philippine dealing system, the U.S. dollar was also
trading at 39.785 peso, just up from 39.775 peso late Wednesday.
Philippine Central Bank Governor Rafael Buenaventura said
Thursday he sees no signs of undue pressure on the peso; the
peso's weakness of late was due mainly to the fall in the Thai
baht, which is closely watched in the Manila currency market
because of the similarities of the Philippine and Thai economies.
The U.S. dollar was also trading at S$1.6832, up slightly from
S$1.6821 late Wednesday. Traders said Singapore's currency was
protected in part by its regional safe haven status, given the
volatility of the Thai baht and Indonesian rupiah.
"The market is comfortable at these levels; when we start
getting down toward S$1.68, traders look for signs of (Monetary
Authority of Singapore) intervention," a trader at a U.K. bank in
Singapore said.
The U.S. dollar was also trading at Rp 7,775, up a touch from
Rp 7,707 Wednesday. Traders dismissed any thoughts that many
investors were taking a punt on the outcome of the East Timor
referendum, expected next week, or what would happen in the run-
up to the November presidential elections.
"Check the wind direction; that will tell you the same thing,
" said one trader. "Trading volumes are low and the prospects for
volatility are high over the next week."
There are also further signs of economic distress in the
country. A government official reported Thursday that non-oil and
gas exports fell 13.8 percent in July, primarily on the back of a
decline in the export of agricultural commodities. The government
plans on releasing Indonesia's consumer price index Friday.
In Taiwan, the U.S. dollar was trading at NT$31.825, almost
unchanged from NT$31.83 Thursday.