Asian currencies mixed late, stock market outflows hurt won
Asian currencies mixed late, stock market outflows hurt won
Dow Jones, Singapore
Continuing foreign outflows from the South Korean stock market
undermined the won, while other Asian currencies finished mixed
after trading in narrow ranges Tuesday.
The Indonesian rupiah shed some of its gains against the U.S.
dollar following a less-than-encouraging report on the country's
economy by the Asian Development Bank.
The Singapore dollar and New Taiwan dollar also slipped, while
the Thai baht and Philippine peso strengthened modestly.
Foreigner investors were net sellers of Korean shares for the
fifth straight session, putting downward pressure on the local
currency, as trades are settled and proceeds are converted to
U.S. dollars.
The U.S. dollar finished at 1,329.6 won, up from Monday's
close at 1,328.2 won.
"With foreigners continuing to capitulate in the equity market
and onshore oil importers demanding U.S. dollars, the won
continues to lag the rest of region," UBS Warburg said in a note
to clients.
Still, foreigners haven't bought as much U.S. currency as had
been expected, prompting speculation that foreign investors may
be parking their cash in won-denominated bank or brokerage
accounts as they wait for local share prices to bottom out.
Against the rupiah, the U.S. dollar edged up to Rp 9,630 in
late Asian trading from Rp 9,560 a day earlier. Local companies
bought the U.S. dollar to repay maturing offshore debts, dealers
said.
However, the balance remains tipped in favor or the rupiah
over the near term, with sentiment being bolstered by progress on
privatization and the high likelihood that Indonesia's creditors
will sign a debt restructuring plan this week.
Still, the country has a long way to go toward bringing
government debt under control and setting the stage for sustained
economic growth, the ADB noted in its semiannual report on the
region.
The ADB predicted Indonesia's economy will grow by just 3%
this year, too little to create enough jobs for new workers
entering the market.
The New Taiwan dollar weakened for the first time in three
sessions as it tracked the yen lower.
The U.S. dollar closed at NT$34.982, up from NT$34.978 late
Monday. The pair traded in a narrow range of NT$34.958 to
NT$34.985.
Against the yen, the dollar was quoted at Y131.75 in late
Asian trading, up from 131.48 yen late Monday in New York. A
slight easing of tensions in the Middle East and a 2.1 percent
drop in the Nikkei stock average helped the dollar advance
against the yen.
The Singapore dollar similarly mirrored the yen's moves.
Late in Asia the U.S. dollar was quoted at S$1.8389, up from
S$1.8349 late Monday. It traded between S$1.8350 and S$1.8395.
Trading was quiet with uncertainty about the future situation
in the Middle East keeping many players on the sidelines, dealers
said.
The peso was supported by exporters' dollar sales and thin
corporate demand for the U.S. currency.
The dollar closed at 51.055 pesos on the Philippine Dealing
System, down from 51.095 pesos Friday. Markets in Manila were
closed Monday for a public holiday.
The baht was a touch higher in quiet trading as dealers
returned to their desks after a holiday Monday.
Toward the end of Asian trading the dollar was quoted at
43.535 baht, compared with 43.585 baht late Friday.