Asian currencies mixed late, dollar remains buoyant
Asian currencies mixed late, dollar remains buoyant
Dow Jones, Singapore
Asian currencies were mixed in directionless trading late
Friday, with the dollar retaining its resilient streak despite
its losses overnight.
After an initial knee-jerk selloff in the dollar, most Asian
currencies came off their morning highs as the U.S. currency
regained its footing, bolstered by the pessimism surrounding the
region's economies, dealers said.
"The trend for the dollar is still higher," said a dealer at a
European bank. "These were just short-term corrections."
Late in the day, the Singapore dollar was marginally weaker.
The Philippine peso, South Korean won and Indonesian rupiah were
steady.
The Thai baht and New Taiwan dollar were slightly higher.
As the Sept. 11 terrorist attacks on the U.S. dealt a further
blow to the already ailing U.S. economy, a slew of dismal
economic data unveiled Thursday knocked the wind out of the U.S.
currency's sails.
Worse-than-expected U.S. durable goods data, another increase
in weekly jobs claims, and a 11.7 percent plunge in sales of
existing homes contributed to the dollar's fall against other
major currencies overnight. But the dollar eventually recovered
on the coattails of a rally in the equity market and a growing
consensus that the U.S. economy is best placed to rebound.
At 0908 GMT (4.08 p.m. Jakarta Time), the dollar was quoted at
122.57 yen, below 122.89 yen late Thursday in New York.
The Singapore dollar wiped out its overnight gains to end the
Asian trading day slightly weaker at S$1.8293 to the U.S.
currency, compared with S$1.8277 late Thursday.
The New Taiwan dollar and South Korean won retained their
recent strength on persistent dollar sales by foreign funds
investing in their respective stock markets and traditional
month-end dollar sales by exporters, dealers said.
The U.S. dollar closed at NT$34.539, down from NT$34.545
Thursday. Dealings were valued at US$273 million.
The dollar finished at 1,296.3 won, little changed from
1,297.0 won Thursday, as it lacked the momentum to convincingly
break below 1,295 won support.
The Thai currency was slightly stronger at 44.825 baht,
compared with 44.880 baht late Thursday.
Suspected dollar sales by the Indonesian central bank salvaged
the rupiah, which had earlier floundered to as low as around Rp
10,300 on corporate demand for the U.S. currency, dealers said.
The Indonesian rupiah ended steady Friday, with the central
bank suspected to have sold dollars to prop up the local unit.
The dollar closed at 10,253 rupiah, little changed from its
close of Rp 10,250 Thursday. The dollar had risen to an intraday
high of Rp 10,305 earlier in the day due to month-end corporate
demand, dealers said.
On the Philippine Dealing System, month-end corporate demand
for dollars helped the U.S. currency stay afloat, dealers said.
The dollar ended at 52.040 pesos, relatively steady compared
with 52.010 pesos Thursday. Volume shriveled to $54.7 million,
from $100 million Thursday.