Asian currencies mixed late; little direction from yen
Asian currencies mixed late; little direction from yen
SINGAPORE (Dow Jones): Asian currencies were mixed late Tuesday having traded within tight trading bands, as the yen's range-bound movements provided little direction for the market, dealers said.
The Singapore dollar, the New Taiwan dollar, and the Thai baht were marginally higher. The Indonesian rupiah was steady, while the South Korean won and the Philippine peso were slightly lower.
"There's hardly any lead, even from dollar-yen," said a senior dealer at a European bank.
The Indonesian currency was unchanged from late Monday at Rp 10,950 against the dollar, although investors remained wary of the domestic political imbroglio.
Indonesia's President Abdurrahman Wahid met with his popular deputy and senior ministers Tuesday, but failed to ease tensions resulting from Indonesia's protracted political crisis.
Top security minister Susilo Bambang Yudhoyono wouldn't gave details about the talks, but said Wahid called on Vice President Megawati Sukarnoputri and seven members of his Cabinet to hold more talks.
Rivalry between Wahid and Megawati has intensified since parliament last week opened the door to possible impeachment by censuring the head of state over allegations of corruption and incompetence.
While the recent election of Japanese Prime Minister Junichiro Koizumi has fanned hopes for structural reforms, the dollar has been unable to break below the Y121 level convincingly. The yen has been range-bound as market participants wait to see if Koizumi will deliver his promises for reform.
At 0840 GMT (3:40 p.m. Jakarta time), the dollar was at Y121.59, above Y121.10 late Monday in New York. The dollar was at Y121.70 late Monday in Tokyo.
The Singapore dollar is slightly firmer late Tuesday, after the Monetary Authority of Singapore was suspected to have defended the currency - through a local bank - when it floundered to as low as S$1.8265 against the U.S. dollar in early trade, dealers said.
But corporate demand for U.S. dollars remained insatiable as companies seek to fund their overseas acquisitions, dealers said.
Late Tuesday, the U.S. dollar was at S$1.8238, below S$1.8255 late Monday.
The Taiwanese central bank also intervened in the market Tuesday, buying around US$50 million throughout the day to slow the appreciation of the local currency, which had strengthened on foreign equity fund inflows, dealers said.
Taiwan needs to maintain the price-competitiveness of its exports, which fell a steeper-than-expected 11.3 percent on year to US$10.87 billion in April. Analysts had expected a decline of 8.2 percent.
The U.S. dollar closed at NT$32.875, down slightly from Monday's close of NT$32.879, in dealings valued at US$230 million.
The yen's slight decline late in the day to the weaker end of its trading range dragged the South Korean won lower, although dollar sales, mostly by local exporters, kept a rein on the won's losses, dealers said.
The dollar ended at 1,300.50 won, up from 1,297 won Monday.
As widely expected, the Korean central bank is leaving the one-day call rate unchanged at 5 percent in May, partly due to concerns over inflation.
Jitters ahead of the Philippines' congressional and local elections May 14 pushed the peso slightly lower, dealers said.
The dollar closed at 50.460 pesos on the Philippine Dealing System, up from 50.440 pesos Monday.
The Thai currency was a touch higher at 45.575 baht against the dollar, compared with 45.655 baht late Monday in thin offshore trading, with Thai markets closed for a holiday.