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.