Asian currencies mixed on Tuesday
Asian currencies mixed on Tuesday
Dow Jones, Singapore
Most Asian currencies were little changed in an uninspired
trading session Tuesday as market players waited to see how the
dollar and yen will react to key pieces of economic information
coming out of the U.S. and Japan this week.
The Singapore dollar, New Taiwan dollar and Indonesian rupiah
were also little changed. The South Korean won slipped, while the
Philippine peso strengthened slightly. Markets in Thailand were
closed for a public holiday.
"Despite attempts on the upside and downside of the range,
foreign exchange markets are still caught in ranges, reluctant to
budge as the forces driving Asian currencies stronger and weaker
remain finely balanced," BNP Paribas said in a note to clients.
The dollar/yen exchange rate, which often sets the tone for
trading in other Asian currencies, was trapped in a relatively
narrow band throughout the session and provided little guidance.
The market is also focusing on Federal Reserve Board Chairman
Alan Greenspan's congressional testimony Wednesday on the state
of the U.S. economy.
Late in Asian trading, the dollar was quoted at 133.83 yen,
compared with 133.80 yen late Monday in New York and 133.86 yen
late Monday in Tokyo.
Concerns that the Koizumi administration's anti-deflation
package may not produce the desired results, along with the
expiration of dollar/yen option barriers Wednesday, could trigger
renewed yen weakness that could flow through to other Asian
currencies, BNP Paribas added.
On the other side of the Pacific Ocean, analysts said the
dollar could benefit from any hints that Greenspan may give on
prospects for a U.S. economic recovery.
The New Taiwan dollar found little room to maneuver between
opposing market forces. Month-end U.S. dollar selling by
exporters helped the local currency, while net sales of stocks by
foreigners hurt it.
The U.S. dollar closed at NT$35.088, compared with NT$35.090
at the previous close.
The Singapore dollar tracked the yen's narrow trading range.
Late in Asian trading, the U.S. dollar was quoted at S$1.8313,
down marginally from S$1.8318 late Monday. It traded between
S$1.8306 and S$1.8325.
Against the Indonesian rupiah, the dollar finished Asian
trading unchanged at Rp 10,175.
Market players are waiting to see who the government will
choose as the winning bidder for a 51 percent stake in PT Bank
Central Asia.
Debt restructuring talks under the Paris Club of creditors in
April depend on a successful sale of the bank and failure to
announce a winner this week could hurt the rupiah, analysts said.
Late Tuesday, Indonesia's Bank Restructuring Agency said it
would need at least two weeks to choose a winner for a
controlling stake in Bank Central Asia, signaling yet another
delay in the long-awaited sale.
The peso was supported by a decline in corporate demand for
dollars and expected investment inflows, traders said.
The dollar closed at 51.315 peso on the Philippine Dealing
System from Friday's 51.368 peso.
Manila's financial markets were closed Monday for a national
holiday.
The South Korean won weakened as foreigners bought dollars to
settle their recent stock sales.
The dollar finished at a four-week high of 1,325.4 won, up
from Monday's close of 1,323.90 won.
The steady yen helped keep the dollar hemmed in between
1,322.5 won and 1,324.9 won.