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.