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.