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.