Asian currencies mixed, trading subdued
Asian currencies mixed, trading subdued
Dow Jones, Singapore
Most Asian currencies were mixed Monday with trading subdued
in some markets after a long holiday weekend.
The New Taiwan dollar and Philippine peso were virtually
unchanged, while the Singapore dollar, Thai baht and South Korean
won weakened. The Indonesian rupiah finished marginally stronger.
Foreign exchange traders in Singapore, Indonesia and the
Philippines returned to their desks Monday after taking the day
off for the Good Friday holiday last week.
In addition, the fact that markets were closed Monday in Hong
Kong and several European cities for the extended Easter holiday
contributed to the muted trading, dealers said.
The yen's weakness against the dollar applied some downward
pressure to the Singapore dollar and won, but wasn't a major
factor in Asian trading Monday.
The won slipped despite trade data that provided more evidence
Korea's economic recovery is well in hand.
The government reported that Korea's exports fell 5.2 percent
in March from a year ago, compared with a 16.8 percent on-year
fall in February. It was the smallest decline in exports since
they fell 2.1 percent in March 2001.
"The data might fuel further speculation that the central bank
might move to hike rates at its monthly board meeting this
Thursday," Bank of America said in a note to clients.
The U.S. dollar closed at 1,327.5 won, up from Friday's close
at 1,325.9 won.
The won opened the day on a strong note, causing some
participants to take short positions in the dollar. But when
interest in the won began to fizzle at around 1,324.5 won a
dollar in line with the softening yen, some players were forced
to cover their short positions, helping drive the U.S. currency
back up.
The yen took a hit after a key survey of Japanese business
sentiment failed to improve as many analysts had expected it to.
Late in Asian trading the dollar was quoted at 133.35 yen, up
from 132.72 yen late Friday in New York.
Holiday related market closures, as well as a weekend
earthquake in Taiwan, kept many foreign exchange players
sidelined, dealers said.
The U.S. dollar closed at NT$35.002 compared with the previous
close of NT$35.000.
The earthquake, which measured 6.8 on the Richter scale,
killed five people and injured more than 200 Sunday.
The Singapore dollar experienced some mild selling pressure as
the yen weakened, but demand for the U.S. dollar was limited.
Near the end of Asian trading the U.S. dollar was quoted at
S$1.8475, up from S$1.8390 late Thursday.
The U.S. dollar drifted higher in line with its gains against
the yen, but interest in the U.S. currency thinned as market
participants awaited clearer leads.
The Philippine peso languished with many banks reluctant to
take fresh positions following a long holiday.
The dollar closed at 51.000 pesos on the Philippine Dealing
System, almost unchanged from 51.005 pesos Wednesday, the last
day of trading last week before the holiday.
Traders said demand for dollars was subdued and inflows of the
U.S. currency were thin.
The rupiah ended slightly higher as market participants sold
the U.S. dollar following its rebound late last week.
The dollar closed at Rp 9,766, down from its close Thursday at
Rp 9,820. The dollar fell to an intraday low of Rp 9,675 before
local companies snatched up the unit on dips.
The baht traded in a narrow range following comments from
central bank officials that a competitive currency was key to
export competitiveness.
The dollar finished Asian trading at 43.600 baht, up from
43.485 baht late Friday.