Asian currencies mixed, stocks scandal dents peso sentiment
Asian currencies mixed, stocks scandal dents peso sentiment
HONG KONG (Dow Jones): Asian currencies had a mixed day Wednesday, initially strengthening in line with an overnight run- up in the yen, then falling back as official intervention erased the Japanese currency's gains.
Attention in regional markets focused closely on the Philippine peso after Tuesday's wholesale resignation of the Philippine Stock Exchange's compliance department.
As expected the resignation, a protest over the alleged whitewash of a stock exchange investigation into price rigging, badly dented sentiment toward the currency.
Within minutes of the opening bell on the Philippine Dealing System the peso had dropped to its lowest level in over five months, as the dollar was bid up through the 41.000 level to touch a high of 41.150 pesos.
However, the dollar closed local trading at 40.985 pesos, up only slightly from 40.980 pesos at Tuesday's close.
Although investor sentiment in the Philippines has suffered as a result of the stock trading scandal, analysts agreed that the peso's current volatility is likely to prove transitory, forecasting that the currency will find support from expected corporate demand.
In Jakarta, the Indonesian rupiah ended little changed Wednesday in listless trading as participants waited for fresh leads.
The dollar ended Asian trading at 7,450 rupiah against Rp 7,455 late Tuesday.
Dealers said the market closely watched the visit Wednesday of President Abdurrahman Wahid to the house of former President Soeharto, but no news had emerged from the meeting between the two.
Attorney General Marzuki Darusman is seeking to have doctors examine Soeharto to see if he's fit to testify in a corruption case involving the former president's charitable trusts.
Abdurrahman made no comment to the press on his conversation with Soeharto, whose aides say is too sick to face questioning.
In other regional markets the won eased slightly from Tuesday's levels as the market responded to official warnings that the South Korean authorities would intervene to counter any rapid strengthening of the local currency.
Market participants said the warnings were reinforced by government-driven dollar purchases, which helped push the U.S. currency to an intraday high of 1,122.00 won.
Profit-taking set in, however, and by the close the U.S. dollar had slipped back to be quoted at 1,119.00 won, just a touch higher than 1,118.50 won the previous day.
Central bank sales of the New Taiwan dollar neutralized upward pressure on the local currency exerted by continuing foreign investor interest to buy into the Taipei stock market.
At the close, the U.S. dollar was quoted against the Taiwanese currency at NT$30.766, up from NT$30.762 the day before on relatively slim volumes of $365 million.
The Singapore dollar traded sideways through most of the Asian session after gaining in line with the yen in overnight trade.
Late in Asian dealing the U.S. dollar was trading at S$1.7178, down from S$1.7213 late Tuesday.
Against the Thai baht, the U.S. dollar was at 37.965 baht, down from 38.0250 baht the day before.