Asian currencies mostly down late, GDP gives US dollar respite
Asian currencies mostly down late, GDP gives US dollar respite
Dow Jones Singapore
Asian currencies wobbled in thin trading late Thursday, as the U.S. dollar found some respite from a smaller-than-expected contraction in the U.S. economy in the third quarter, dealers said.
The U.S. economy shrank at an annualized rate of 0.4 percent during the July-September period; economists had forecast a contraction of 1 percent. It was the first time since 1993 that the U.S. has experienced a quarterly economic contraction.
Trading volume in Asia's foreign exchange markets was thin, as activity started to show signs of slowing ahead of the year end, said a dealer a European bank.
As the honeymoon for Indonesian President Megawati Soekarnoputri came to an end, the local currency briefly floundered past Rp 10,600 per U.S. dollar earlier in the day, its weakest level since the leader took office on July 23.
Just over 100 days into her rule, Megawati admitted Thursday in her address to the People's Consultative Assembly - the country's highest legislative body - that her government has achieved little since it was formed.
She also said the government's ability to repay its debt "has come close to a dangerous point."
At 0940 GMT (3:40 p.m. Jakarta time), the rupiah had regained some of its footing to trade at Rp 10,545, after sliding to as low as Rp 10,640 earlier.
The rupiah's fall added to the pressure on the Singapore dollar, which already hurting from the market's renewed appetite for the U.S. currency, dealers said.
Around 1000 GMT (5 p.m. Jakarta time), the U.S. dollar was quoted at S$1.8272, higher than S$1.8166 late Wednesday.
Pressured by the regional currency slump, the Thai unit weakened to 44.705 baht per U.S. dollar, compared with 44.685 baht late Wednesday.
In Seoul, U.S. dollar demand by offshore participants sparked short-covering in the U.S. currency, weighing on the South Korean won, dealers said.
The U.S. dollar finished at 1,298.0 won, up from 1,296.10 won Wednesday.
The New Taiwan dollar closed steady amid lackluster trading, with the central bank slowing down in its intervention, dealers said.
The U.S. dollar ended at NT$34.529, little changed from Wednesday's close of NT$34.525.
Philippine markets were closed Thursday for a long religious holiday, and will re-open Monday.