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.