Asian currencies mixed; 4-month high for S'pore dollar
Asian currencies mixed; 4-month high for S'pore dollar
SINGAPORE (Dow Jones): Nervousness in the market over the expected release weak second-quarter economic growth figures in the U.S. kept most Asian currencies well bid against the dollar Friday.
But the Indonesian rupiah closed lower as the market waits to see whether President Megawati Sukarnoputri will meet investor hopes of appointing a cabinet of economic experts next week.
The rupiah rallied to its highest level in five months this week after Megawati's election ended months of political tension. The national assembly voted Monday to oust former president Abdurrahman Wahid after over a year of political bickering which hurt markets.
But some of the shine came off the rupiah Friday as markets wait to see whether Megawati's government will perform any better than Wahid in helping restore the economy to health.
The dollar closed at Rp 10,000, up from Rp 9,950 at Thursday's close, and much higher than five-month lows of Rp 9,750 intraday Thursday.
The Singapore dollar was the region's main beneficiary of the shifting sentiment, strengthening to a four-month high in intraday trading against its U.S. counterpart.
The Thai baht and New Taiwan dollar also gained on the dollar, while the South Korean won and Philippine peso finished slightly lower.
Dealers said they were wary of holding long dollar positions heading into the weekend, especially with the gross domestic product numbers scheduled to be released in the U.S. overnight.
The Singapore dollar remained on the strong side of 1.80 per U.S. dollar for most of the session, muscling its way to an intraday high of 1.7943 per U.S. dollar. That was its best performance since March 28 when it touched 1.7876 per U.S. dollar.
The U.S. dollar recovered somewhat late in the session, but couldn't move back above the psychologically important S$1.800 level. Near the end of Asian trading the U.S. dollar was quoted at S$1.7982, down from S$1.8041 late Thursday.
The dollar, which has dominated global currency markets for most of the year, has stumbled in recent days amid concerns about the U.S. economy. However, many analysts are forecasting the dollar to resume its upward march in the weeks ahead.
"We expect the U.S. dollar to strengthen against both the yen and the euro by the end of the year and have recently revised our Asian forecasts to reflect this view," Standard Chartered Bank said in a research report.
The Thai baht strengthened in line with the Singapore dollar, despite concerns over the outcome of Prime Minister Thaksin Shinawatra's asset concealment case.
Late in Asia the dollar was quoted at 45.650 baht, down from 45.670 baht late Thursday.
Thailand's Constitutional Court said Friday it was close to reaching a verdict.
Thaksin was indicted by the National Counter Corruption Commission for failing to disclose part of his assets while serving in a previous government in 1997. If the court upholds the commission's ruling, he will be banned from politics for up to five years and will be forced to step down immediately.
The New Taiwan dollar ended higher for the eighth straight session Friday, supported by exporter selling and inflows of foreign funds.
The U.S. dollar closed at NT$34.767, down from NT$34.786 Thursday.
The South Korean won weakened after the market concluded it probably strengthened more than it should have a day earlier on comments by Commerce Minister Chang Che-shik. Chang said he thought an appropriate level for the dollar was between 1,200 won and 1,250 won.
The dollar closed at 1,300.8 won, up from 1,298.3 won a day earlier.
Against the Philippine peso the dollar closed at 53.45 pesos on the Philippine Dealing System, up slightly from the previous session's close of 53.42 pesos.