Asian currencies mixed, rupiah down
Asian currencies mixed, rupiah down
S. Anuradha, Dow Jones, Singapore
Asian currencies were mixed in thin trading Thursday, with the baht benefiting from capital inflows and the peso suffering amid deepening concerns about fiscal slippage in the Philippines.
The Singapore dollar and Taiwanese dollar also rose, while the Indonesian rupiah registered a small decline. The South Korean market was closed Thursday.
"The absence of any fresh news prevented the regional currencies from registering sharp moves," said James Malcolm, foreign exchange strategist at JP Morgan Chase.
The dollar drifted higher against the yen in Tokyo, building on its recent retracement from six-month lows hit late last month. Traders said that move mostly reflected short-covering by speculators and didn't represent a shift in the overall trend.
In Manila, the dollar rose against the peso amid persistent worries about the nation's fiscal outlook.
The government's economic planning chief said he's concerned that failure to meet fiscal targets in 2002 could negatively affect the country's credit rating. "We are worried about that. That is why all our efforts are concentrated on staying within the target," said Socioeconomic Planning Secretary Dante Canlas.
The Philippine government has set a budget deficit target of 130 billion pesos for 2002, but many analysts believe weak revenue collection will mean an overshoot in the target. In the first four months of 2002, some 64 percent of the total planned deficit was already incurred.
The dollar inched higher, rising to 50.465 pesos, up from 50.445 pesos late Tuesday. The Philippine market was closed Wednesday for a public holiday.
The Thai baht was firmer against the dollar as foreign players continued to pour more money into the currency to fund stock investments. Foreigners were net buyers of 417.9 million baht of Thai shares Wednesday. The Stock Exchange of Thailand, or SET, index was up 2.84 points, or 0.7 percent, at 426.45, but off its high of 428.76 in early trade. Still, it was the highest close since February 2000.
The dollar finished at 42.265 baht, down from 42.31 baht late Wednesday.
The Singapore dollar was slightly stronger against the dollar as banks trimmed long U.S. dollar positions.
The dollar was quoted at S$1.7865 in late trading, down marginally from S$1.7870 late Wednesday.
The New Taiwanese dollar was also higher against the dollar in reaction to a sharp rise in domestic shares. The Weighted Price Index of the Taiwan Stock Exchange rose 162.27 points, or 3 percent, to 5562.23.
The U.S. dollar closed at NT$34.05, down from NT$34.116 Wednesday.
The Indonesian rupiah, on the other hand, ended slightly lower against the dollar on some covering of short-dollar positions following the U.S. currency's fall Wednesday.
The dollar closed at Rp 8,745, up from Rp 8,700 Wednesday.
Although the expected disbursement of the next $350 million loan tranche from the International Monetary Fund at the end of the month is positive for the rupiah, there is concern over the government's recent failure to sell some state assets and the prospect of political tensions ahead of the annual session of the highest legislative body in August.
"Given the usual volatility in the rupiah it has been trading fairly steady," a trader at a European bank said.
Traders said they expect the regional currencies to continue to appreciate against the dollar Friday.