Asian currencies mostly buoyed late, concerns over U.S. economy
Dow Jones, Singapore
Most Asian currencies were buoyed late Tuesday, as the dollar struggled to overcome renewed anxieties over the severity of the U.S. economic malaise, dealers said.
The Singapore dollar and the Thai baht were stronger, while the Philippine peso and the New Taiwan dollar were steady. The Indonesian rupiah and the South Korean were weaker.
"It looks like an international dollar correction, rather than Asian currency strength," said David Simmonds, a regional currency strategist at Salomon Smith Barney/Citibank.
But Asian currencies will continue their recent downward draft in coming months, amid the deepening regional economic quagmire, he added.
The dollar has been under pressure since Monday as players brace themselves for a slew of potentially dismal U.S. economic data later this week, including third-quarter gross domestic product figures, the National Association of Purchasing Managers index, and October unemployment data.
Renewed fears that Argentina could default on part of its US$132 billion external debt stoked a sharp selloff in U.S. equity markets Monday, contributing to the dollar's pullback overnight, dealers said.
With the market especially long in the U.S. currency, the Singapore dollar was the biggest beneficiary of a U.S. dollar pullback, dealers said.
At 0950 GMT (4.50 p.m. Jakarta time), the U.S. dollar was at S$1.8234, lower than S$1.8306 late Monday.
U.S. dollar selling by interbank participants and long liquidation by investment houses sent the currency reeling, triggering stop-losses around S$1.8250 and subsequently, S$1.8230, dealers said.
The Indonesian rupiah ended lower in thin trading Tuesday as state banks bought dollars for month-end requirements, dealers said.
The dollar closed at Rp 10,370, up from Rp 10,265 at its close Monday.
Other state banks bought the dollar sporadically, they added.
The Thai baht ended stronger at 44.675 baht, down from as against 44.820 baht at the Asian close Monday.