Asian currencies mixed, S'pore dollar at 11-week low
Asian currencies mixed, S'pore dollar at 11-week low
Dow Jones, Singapore/Jakarta
Asian currencies were mixed late Thursday, with the Singapore dollar extending its slide to 11-week lows as the central bank apparently acquiesced to a weaker currency.
Foreign equity inflows helped support the South Korean won and New Taiwan dollar, which have recently been outperforming their Southeast Asian peers, burdened by economic and security anxieties, dealers said.
The Indonesian rupiah and Philippine peso were firmer as their respective central banks mounted a continued defense of their currencies, which threaten to take a dive as domestic concerns persist.
The Thai baht was slightly lower, but, given the lack of trading interest in the currency, continued to trail behind the Singapore dollar's decline, dealers said.
While the other Southeast Asian currencies held their own, the Singapore dollar, being the most liquid currency, took the brunt of the region's woes.
Dealing another blow to the Singapore dollar was a New York Times article Wednesday that terrorists linked to Osama bin Laden's al-Qaeda group based in the Philippines, Indonesia and Malaysia were "likely the targets of future covert and overt American actions," dealers said.
Without any evidence of intervention by the local monetary authority, the Singapore dollar extended its precipitous decline to an 11-week low of S$1.8251 against the U.S. currency Thursday, down from S$1.8068 late Wednesday.
In South Korea, the dollar ended at 1,302.0 won, down from Wednesday's close of 1,306.7 won.
In Taipei, the U.S. dollar ended at NT$34.553, little changed from NT$34.555 Tuesday. The market was closed Wednesday for a national holiday.
On the Philippine Dealing System, dealers believed the peso continued to find reprieve from the central bank.
The dollar ended at its intraday low of 51.750 pesos, from 51.791 pesos Wednesday.
The Indonesian currency was stronger at Rp 9,955 per dollar, compared with Rp 10,005 late Wednesday.
The U.S. currency hit an intraday high of Rp 10,110 in the morning on local corporate demand and fears the U.S. currency could further strengthen. Companies need the dollar for foreign debt repayment and to fund import purchases.
The Thai currency was marginally weaker at 44.785 baht to the dollar, compared with 44.755 baht late Wednesday.