Asian currencies mixed on late trading
Asian currencies mixed on late trading
SINGAPORE (Dow Jones): Asian currencies were mixed late
Monday, with the Thai baht continuing to hold its own amid fears
that the central bank would tighten restrictions on the flow of
baht to offshore markets in its bid to deter speculative trading,
dealers said.
The Indonesian rupiah ended flat Monday as local banks sold
dollars, capping a modest greenback spike, traders said.
The dollar gained early after Singapore banks bought dollars
on Indonesian President Abdurrahman Wahid's outspoken rebuke of
Singapore. But it quickly retreated to a tight range in
lackluster trading.
The dollar closed at Rp 9,455 in Asia, unchanged from Friday,
after hitting an intraday high of Rp 9,480.
The dollar is expected to remain rangebound below its Rp 9,500
resistance level, traders said.
The baht found support from market talk, which was later in
the day confirmed, that the Thai central bank could make it
expensive for onshore banks to cover their short baht positions
for their offshore clients, dealers said.
In other currency markets, the South Korean won and the
Singapore dollar were firmer, while the new Taiwan dollar was
steady.
Left out in the cold, the Philippine peso was dented by
domestic political worries.
The baht, which was immune to the storm in foreign exchange
markets last week, continued to find strength from concerns over
a possibility liquidity squeeze and as the central bank mounted
its campaign against speculative trading in the currency, dealers
said.
Around 0900 GMT, the dollar was at 43.585 baht, down from
43.795 baht late Friday.
"Concerns over the funding squeeze and fears the central bank
will tighten regulations are keeping the Thai baht pretty well
supported," said Mansoor Mohi-uddin, a regional currency
strategist at UBS Warburg.
The Singapore dollar tracked the baht's gains, with the U.S.
dollar down at S$1.7558 from S$1.7592 late Friday.
News Monday that SembCorp Logistics Ltd. and Swiss shipping
company Kuhne & Nagel International AG, will take a 20 percent
stake in each other as part of a global strategic alliance helped
the Singapore dollar rebound later Monday, dealers said.
President Abdurrahman Wahid's latest outburst, which
threatened to strain Singapore's relations with Indonesia, had
little impact on the Singapore dollar.
The South Korean won and the New Taiwan dollar found solace
from gains on their respective bourses, following the currencies'
collapse last week, dealers said.
The dollar finished at 1,186.50 won, down from Friday's close
of 1,188.10 won.
Against the New Taiwan dollar, the U.S. dollar closed at
NT$32.878, down from NT$32.875 Friday.
Both North Asian currencies' gains, however, don't herald a
reversal in their fortunes, analysts said.
The Philippine peso slipped ahead of scheduled street protests
this week to pressure President Joseph Estrada to step down,
dealers said.
The dollar ended at 49.410 pesos on the Philippine Dealing
System, up from Friday's close of 49.390 pesos.