Asian currencies mixed late; Singapore dollar falls on yen
Asian currencies mixed late; Singapore dollar falls on yen
SINGAPORE (Dow Jones): Asian currencies were mixed late
Monday, with the Singapore dollar eventually buckling under the
pressure of the yen's plunge after largely holding its own
earlier in the day, dealers said.
The Indonesian currency's continued rebound did little to
salvage the Singapore dollar. The Singapore dollar had rode on
the rupiah's coattails last week following the sacking of
President Abdurrahman Wahid, dealers said.
The Indonesian currency extended its recent ascent to 9,700
rupiah per dollar, from Rp 9,990 late Friday, as investors
anxiously awaited President Megawati Sukarnoputri's cabinet
lineup.
Standard & Poor's revision of its outlook on Indonesia's long-
term sovereign credit ratings to stable from negative - the
agency was inspired by last week's peaceful transfer of power -
cemented the rupiah's strength, dealers said.
But even this failed to cheer participants in the Singapore
dollar market, as doubts about the prospects for reforms in
Indonesia lingered, dealers said.
The wave of long U.S. dollar liquidation by U.S. funds last
week - prompted partly by the dramatic political events in
Indonesia and the debate surrounding the U.S. dollar's strength -
has ebbed, dealers said.
The U.S. dollar had failed to make much headway earlier in the
day as sales of the currency by a large local bank around
S$1.7990 stymied its advance, despite the U.S. dollar's advance
by more than a yen in the Japanese foreign exchange market,
dealers said.
But the market's belief that the Singapore dollar has reached
a near-term top emboldened interbank participants in Singapore
and London-based players to snap up the U.S. currency later in
the day, propelling it above S$1.8000, dealers said.
Dealers also noted corporate interest for U.S. dollars was
creeping in again. With more companies in Singapore expected to
fund their overseas acquisitions with the U.S. currency, the
local dollar's strength will likely be short-lived, market
watchers said.
At 0903 GMT (4:03 p.m. Jakarta time), the U.S. dollar was
quoted at S$1.8012, higher than S$1.7982 late Friday.
The South Korean currency too felt the pain from the yen's
fall, although traditional month-end dollar sales by local
exporters for month-end book balancing mitigated the won's
losses, dealers said.
The dollar finished at 1,303.5 won, up from Friday's close of
1,300.8. won
At 1003 GMT, the dollar was quoted at 125.07 yen, above 123.55
yen late Friday in New York. The dollar was at 123.78 yen late
Friday in Tokyo.
The yen's early gains in the wake of Prime Minister Junichiro
Koizumi's victory in Sunday's Upper House poll proved to be
short-lived.
Japan's dismal industrial production data and the subsequent
1.9 percent slide on the local stock market dragged the yen
lower.
The Thai baht was marginally weaker, although movements were
tame as markets anxiously awaited Thailand's Constitutional
Court's long-awaited verdict on Prime Minister Thaksin
Shinawatra's assets concealment case.
The dollar was at 45.700 baht, a touch higher than 45.650 baht
late Friday.
Observers expect the court to deliver its ruling as early as
this week or next week at the latest, but remain divided whether
it will uphold an anti-graft commission ruling that Thaksin
intentionally hid part of his wealth, or clear him by accepting
that he made an honest mistake.
Over the last few days, Thai media said Thaksin is most likely
to be found guilty for failing to disclose part of his assets
while serving in a previous government in 1997.
On the Philippine Dealing System, the dollar closed at 53.370
pesos, slightly lower than 53.450 pesos Friday.
Taiwan's financial markets were closed due to a typhoon.