Asian currencies mixed late on pre-G-7 position adjustment
Asian currencies mixed late on pre-G-7 position adjustment
RON HARUI, Dow Jones, Tokyo
Asian currencies were mixed against the U.S. dollar in Asia
Friday, as players put finishing touches on positions ahead of
key U.S. economic data later today and a weekend meeting of
finance officials of the Group of Seven industrial nations.
Grabbing the spotlight in Asia, however, was the fall in the
Philippine stock market to a new three-year low due to ongoing
uncertainty over the economic effects from possible U.S. military
action against terrorists, dealers said.
With the local stock market's plunge, the Philippine peso was
dragged lower against the U.S. dollar, despite better-than-
expected inflation data and credit rating agency Fitch's decision
to keep its stable outlook for the Philippines.
Inflation in the Philippines rose 6.1 percent on year in
September, compared with economists' consensus estimate of 6.3
percent. Fitch maintained its stable outlook for the Philippines
due to the nation's flexible exchange-rate system, modest
external financing needs and diminished political risks.
Fitch currently has a BB+ foreign currency and BBB- local
currency rating for the country's sovereign debt.
In Taipei, the New Taiwan dollar eked out gains against its
U.S. counterpart on a surge in the local stock market, which was
fueled by buying from government funds and foreign investors.
The U.S. dollar closed at NT$34.559 late Friday, down from
Thursday's close of NT$34.568.
In Seoul, the Korean won ended marginally higher against the
U.S. dollar as the yen traded a tight range, and investors were
reluctant to take positions ahead of the weekend.
The U.S. dollar finished at 1,312.2 won, down slightly from
Thursday's close of 1,313.1 won.
"I think lots of people are just comfortable with the current
level" of the won against the U.S. dollar, said Oh Suktae, a
Citibank economist in Seoul. "There are still many worries about
the global economy, which makes it very difficult to see won
strength."
In Thailand, the baht was slightly hurt by a slide in local
stocks, spurred by profit-taking. Worries about possible U.S.
retaliation against terrorists increased among investors
following reports about a Russian plane crashing in the Black
Sea, with the cause of the incident remaining unclear.
The Thai currency was trading at 44.705 baht per U.S. dollar
late Friday, weaker from 44.615 baht late Thursday.
In Jakarta, expectations of future interest-rate cuts by Bank
Indonesia cast a shadow over the Indonesian rupiah.
Indonesia's central bank said Friday it hopes to lower its
benchmark interest rate by the end of the year from its current
level of above 17 percent.
While the U.S. dollar failed to rise above that level late
Friday, it was last trading at Rp 9,830, up from Rp 9,740 late
Thursday.
The Singapore dollar was trading at S$1.7829 against the U.S.
dollar late Friday, weaker from S$1.7793 late Thursday.
The Singapore dollar earlier fell to a fresh two-month
intraday low of S$1.7850 to the U.S. dollar, on continuous U.S.
dollar buying throughout the day led by a large local bank,
likely on behalf of clients, dealers said.
However, most market participants weren't aggressive in taking
positions ahead of the G7 ministers' meeting, a Bank of America
report noted.