Asian currencies mixed, rupiah regains footing
Asian currencies mixed, rupiah regains footing
Netty Ismail, Dow Jones, Singapore
Asian currencies were mixed late Tuesday, with some of the Southeast Asian units regaining their footing after having felt the brunt Monday of the U.S.-led retaliatory strikes of Afghanistan.
The Indonesian rupiah was firmer and the Thai baht steady. The Singapore dollar and the Philippine peso were weaker.
In North Asia, the South Korean won and the New Taiwan dollar found reprieve from foreign equity fund inflows, dealers said.
Asian currencies barely reacted to the second-wave of air strikes Monday by allied forces on Afghanistan's Taliban rulers and top terrorist suspect Osama bin Laden's suspected training installations, dealers said.
"Risk aversion hasn't really taken off," said Mansoor Mohi- uddin, a regional currency strategist at UBS Warburg. "The impact has been limited so far."
Still, sentiment remained wary, as uncertainty over the scope and duration of the military conflict and fears of reprisals by terrorists prevailed.
The Indonesian currency stabilized around Rp 10,100 to the dollar for the most part of the day in the absence of any serious violence during the protests against the U.S.-led airstrikes Afghanistan, dealers said.
The rupiah received an added fillip late Tuesday from suspected dollar sales by the Indonesian central bank, in its apparent bid to counter any potential pressure from news that police had fired warning shots and tear gas in a clash with hundreds of protesters outside the heavily guarded U.S. Embassy in Jakarta.
The dollar was quoted at Rp 10,065, down from Rp 10,160 late Monday.
Fears that the protests could turn nasty and threats by protesting Islamic militant groups to retaliate against Americans and other Westerners sent the rupiah reeling to a 10-week low of around Rp 10,550 Monday. dollar.
Ignoring the rupiah for now, the Singapore dollar floundered past the S$1.8000 level against its U.S. counterpart late Tuesday as concerns over Singapore's deteriorating economy intensified, dealers said.
The U.S. dollar was trading at a fresh two-month high of S$1.8032, stronger than S$1.7939 late Monday.
Speculation was rife that the government's advance, or flash, estimate of third-quarter gross domestic product, due Wednesday, may be worse than market expectations after the government said late Tuesday that it will be holding a media briefing to discuss the economy's performance.
On the Philippine Dealing System, uncertainty over the fallout of the U.S.-led strikes on Afghanistan prompted some companies to hedge their debt payments and import requirements by buying dollars, dealers said.
The dollar closed at its intraday high of 51.800 pesos, up from 51.600 pesos Monday.
The Thai currency was marginally firmer around 44.785 baht per dollar, compared with 44.800 baht late Monday.
In Seoul, a 2.3 percent jump in local stocks and dollar sales by exporters bolstered the won. The dollar finished at 1,307.8 won, down from 1,311.6 won Monday.
Against the New Taiwan dollar, the U.S. currency closed at NT$34.555, little changed from NT$34.557 Monday.