Asian currencies mixed late, all eyes on Japanese yen
Asian currencies mixed late, all eyes on Japanese yen
SINGAPORE (Dow Jones): Most Asian currencies were mixed late Tuesday, as several found solace from a stable Japanese yen, dealers said.
The Indonesian rupiah, which was earlier showing signs of weakening, was steady after the central bank came to its defense.
The Singapore dollar and the Thai baht were weaker.
The South Korean won, the New Taiwan dollar and the Philippine peso were slightly firmer, but dealers said the reprieve experienced by these currencies will likely be temporary.
"Generally, the outlook is still weak because the repercussions of the U.S. economic slowdown will be felt on Asian economies," said a chief dealer at a European bank.
Dealers said they will hold on to their buy-dollar-on-dips strategy, unless there are signs of a convincing recovery in the yen. Market watchers said the yen remains susceptible to further assault given Japan's bleak political and economic outlook.
After sliding below Y123 overnight, the dollar was quoted around Y122.60 at 0820 GMT (3:20 a.m. EST), below Y122.73 late Monday in New York.
Asian currency markets are also nervously shifting their attention back to Indonesia, where President Abdurrahman Wahid is expected to respond Wednesday to a parliament censure over two financial scandals.
The parliamentary censure is the most serious threat to Wahid's 17-month rule, as it could pave the way for possible - albeit lengthy - impeachment proceedings.
Investors are also worried about potential clashes between pro- and anti-Wahid protesters which could turn violent.
At 0945 GMT (4:45 a.m. EST), the Indonesian currency was steady around Rp 10,400 against the dollar from Friday's levels. Jakarta markets were closed Thursday for Islamic New Year.
The rupiah, which was hovering around Rp 10,350 earlier in the day, lost ground as corporates, anxious of further falls in the local currency Wednesday, snapped up dollars, dealers said.
The Indonesian central bank stepped in to block the rupiah's descent, selling an estimated modest amount of $10 million around the Rp 10,415-Rp 10,420 levels, dealers said.
Dealers, however, noted persistent corporate demand for dollars.
After taking a breather earlier in the day from Monday's slide to fresh 38-month lows, the Singapore dollar cautiously resumed its descent late Tuesday as the monetary authority showed no signs of staving off the persistent pressure on the currency, dealers said.
"They have not shown their face at all," said a dealer at a European bank.
Comments by the Monetary Authority of Singapore late Monday that short-term volatility in the local dollar won't affect its policy stance on the currency or its undisclosed policy band had early Tuesday led to a pullback in the U.S. currency to as low as S$1.7870, dealers said.
Late in the day, the U.S. dollar was stronger at S$1.7927, compared with S$1.7880 late Monday. The U.S. dollar had peaked at S$1.7945 Monday, its highest level since January 1998, following confirmation of Singapore Telecommunication Ltd.'s takeover of Australia's Cable & Wireless Optus.
Declines in the yen and the Singapore dollar late Tuesday, as well as renewed concerns over the brewing political problems in Indonesia, dragged the Thai baht lower, dealers said.
The dollar rose to 44.405 baht, from 44.315 baht late Monday.
On the Philippine Dealing System, the dollar closed at 49.165 pesos, down from 49.185 pesos Monday.
In South Korea, the dollar ended at 1,309.5 won, down from Monday's close of 1,310.5 won.
Against the New Taiwan dollar, the U.S. dollar finished lower at NT$32.679, from NT$32.699 Monday.