Asian currencies mixed late, market eyes U.S. data
Asian currencies mixed late, market eyes U.S. data
Alan Yonan Jr., Dow Jones, Singapore
Asian currencies were mixed Wednesday as market players looked
to upcoming U.S. economic data for clues to the dollar's
direction in global markets.
The New Taiwan dollar, South Korean won and Indonesian rupiah
gained on the dollar. The Thai baht and Philippine peso weakened,
while the Singapore dollar was little changed.
The dollar has stabilized somewhat against most Asian
currencies in recent sessions after weakening steadily over the
previous three months to historic lows.
The U.S. currency's ability to pierce the 120-yen threshold in
each of the past three sessions has provided a base for the
dollar in Asia, analysts said. However, the dollar's inability to
hold convincingly above that level has raised questions about the
longevity of any rally.
"On the fundamental front there will be a lot of U.S. data out
tonight and that should hopefully give a little more direction to
the dollar in general," said Emmanuel Ng, currency strategist at
Bank of Tokyo-Mitsubishi.
Among the data to be issued are second quarter gross domestic
product, the Federal Reserve's Beige Book report on U.S. economic
conditions, and the July Chicago Purchasing Mangers Index.
After a greater-than-expected drop in July U.S. consumer
confidence reported earlier this week, the market will be looking
closely for any further signs of weakness in the economy.
"A notable shortfall will most likely trigger a selloff in
both equities and the U.S. dollar," Bank of America said in a
note to clients.
Dollar selling by South Korean exporters boosted the won
against the U.S. currency.
The dollar closed at 1,188.0 won, down from 1,193.1 Tuesday.
The dollar traded between 1,187.1 won and 1,194.9 won.
The New Taiwan dollar got a boost as exporters and foreign
banks sold the U.S. dollar in line with its declines against the
won and yen.
The U.S. dollar finished at NT$33.758 compared with NT$33.807
Tuesday. Dealings on Wednesday totaled US$471 million, smaller
than the $612 million Tuesday.
Sentiment toward the rupiah was underpinned by optimism that a
visit by an International Monetary Fund team will lead to new
loans for the country.
The dollar was quoted at Rp 9,060 in late Asian trade, down
from Rp 9,110 late Tuesday.
The IMF praised Indonesia's efforts to rein in its budget
deficit Wednesday during a mission to the country to review
economic reforms under a $5 billion lending program.
"The budget seems to be going well," Daniel Citrin, the senior
IMF official leading the mission, told reporters.
The peso edged lower as banks bought dollars to cover their
short positions in the U.S. currency.
The dollar finished at its daily high of 51.255 pesos on the
Philippine Dealing System, up from of 51.150 pesos at Tuesday's
close.
Against the Singapore dollar, the U.S. currency was quoted at
S$1.7627 in late Asian trading, little changed from late Tuesday.
The baht strengthened for most of the day, but lost ground
near the end in tandem with slight weakening of the yen.
Near the end of Asian trading the dollar was quoted at 41.995
baht, up from 41.900 baht a day earlier.
The market didn't react to Prime Minister Thaksin Shinawatra's
call for more active intervention by the central bank to smooth
out volatility in the dollar/baht exchange rate.