Asian currencies mixed late, intervention jitters grow
Asian currencies mixed late, intervention jitters grow
Dow Jones, Singapore
Asian currencies were mixed late Tuesday, as the inexorable
rise of several currencies to multi-month highs in recent
sessions heightened jitters about central bank intervention,
dealers said.
Still, except for Taiwan's central bank - which intervenes
regularly to curb any excessive currency volatility - there
wasn't any solid evidence that the other monetary authorities in
Asia had bought U.S. dollars to check the appreciation of their
respective currencies.
"The market trend is fairly bullish for Asian currencies, but
there's always the yen risk," said Mansoor Mohi-uddin, a regional
currency strategist at UBS Warburg.
At 0905 GMT (3.05 p.m. Jakarta time), the dollar was quoted at
129.95 yen, marginally higher than 129.89 yen late Monday in New
York, but lower than 130.08 yen late Monday in Tokyo.
The Singapore dollar lost ground after hitting a fresh six-
week high of around S$1.8120 in early trade on aggressive U.S.
dollar sales by U.S. banks and Hong Kong-based funds.
Fears of intervention by the Bank of Korea also contributed to
the won's slight pullback from its intraday high, dealers said.
Still, the won ended stronger at a three-month peak of 1,306.3
won against the dollar, compared with 1,308.8 won Monday.
The New Taiwan dollar closed at a four-month high, even after
relinquishing the bulk of its earlier gains after the central
bank intervened - buying an estimated US$200 million in the
market - and banks covered their short positions in the U.S.
currency, dealers said.
The New Taiwan dollar closed at NT$34.810 against the U.S.
currency, stronger compared with NT$34.845 Monday. The New Taiwan
dollar hit an intraday high of NT$34.760.
On the Philippine Dealing System, the dollar closed at 50.960
pesos, little changed from 50.970 pesos Monday.
The Indonesian currency was weaker at Rp 9,435 to the dollar,
compared with Rp 9,255 late Monday, on short-covering in the U.S.
currency and corporate demand for dollars, dealers said.
The rupiah was indifferent to Standard & Poor's as-expected
downgrade of Indonesia's sovereign ratings to "selective
default," as it was a technical move following the government's
recent debt rescheduling with the Paris Club of official
creditors.
The Thai currency was slightly weaker at 43.360 baht to the
dollar, compared with 43.260 baht late Monday.