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.