Asian currencies mostly down, Taiwan dollar extends fall
Asian currencies mostly down, Taiwan dollar extends fall
SINGAPORE (Dow Jones): Most Asian currencies drifted to the
lower end of their tight trading ranges late Thursday, with
little to inspire the market.
The Indonesian rupiah ended little changed in uneventful
trading with market participants remaining on the sidelines until
the domestic political situation becomes clearer, dealers said.
The dollar closed at Rp 11,247, little changed from its close
Wednesday, dealers said.
"Most banks stayed out of the market today waiting for further
political developments," said a dealer with a foreign bank.
Market participants are waiting to see whether Indonesia's
highest legislative body will oust President Abdurrahman Wahid in
August in connection with two financial scandals.
The yen, finding itself in limbo, provided little direction
for the other currencies in the region as the market await
Friday's announcement on the outcome of the Bank of Japan's
policy board meeting, which began Thursday.
At 0910 GMT (4.10 p.m. Jakarta time), the dollar was quoted at
122.10 yen, marginally higher than 121.97 yen late Wednesday in
New York.
Doubts about whether the sputtering U.S. economy could recover
in the second half of the year, and hopefully lift Asian
countries from their economic quagmire, also weighed on market
sentiment, dealers said.
The U.S. Federal Reserve released Thursday its "beige book", a
survey of regional economic conditions; it showed flat or slowing
economic activity in most districts. The central bank said
manufacturing remains troubled, retail sales were flat nationwide
and labor markets continued to ease.
After shedding almost 1 percent Wednesday, the New Taiwan
dollar extended its decline to close Thursday at NT$34.395,
compared with NT$34.377 Wednesday.
A strong earthquake which rocked the island during trading
hours dragged Taiwan's stock index 1.7 percent lower, and in turn
dealt a fresh blow to the already bruised sentiment on the local
foreign exchange market, dealers said.
Increasing pessimism toward Taiwan's sluggish economy, which
is growing at its slowest pace in 26 years, and worries that
domestic political bickering could hinder the passage of needed
economic reforms have weighed on the currency.
The Philippine peso slipped on corporate demand for the U.S.
currency and persisting concerns that the prolonged hostage
crisis in the south could hurt the flow of tourism and foreign
investment dollars into the country, dealers said.
The dollar closed at 51.360 pesos on the Philippine Dealing
System, a touch higher than 51.310 pesos Wednesday.
The central bank said it hadn't intervened in the past two
days to limit the peso's depreciation.
The Thai currency was slightly stronger at 45.340 baht per
dollar, compared with 45.365 baht late Wednesday, with offshore
players showing little interest to trade the currency amid
concerns over stricter reporting requirements on nonresident
transactions, dealers said.
Quashing any market hopes that the central bank would change
its mind, an official said Thursday the bank still needs more
information on foreign exchange transactions despite the
withdrawal of its new reporting forms, which were to have gone
into effect July 2.
After making little headway above S$1.8170 earlier in the day,
the U.S. dollar was unchanged at S$1.8163 against the Singapore
currency, amid fears of intervention by the Monetary Authority of
Singapore, dealers said.
In Seoul, the dollar finished at 1,291.6 won, down from
1,293.2 won Wednesday.