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.