Asian currencies mostly higher late on Japanese yen as stock rallies
Asian currencies mostly higher late on Japanese yen as stock rallies
Netty Ismail, Dow Jones, Singapore
The Japanese yen's bounce and Wall Street-inspired rallies in regional stock markets provided Asian currencies with a breathing spell for the second consecutive day late Friday, dealers said.
Except for the Philippine peso and the Indonesian rupiah, the rest of the region's currencies were firmer.
The Indonesian currency, too, failed to hold its earlier gains, as it succumbed to U.S. dollar demand by corporations needing to repay foreign debt, dealers said.
The U.S. dollar was around Rp 10,415, higher than Rp 10,375 late Thursday.
"There was a broad selloff of the U.S. dollar in Asia," said a dealer at a European bank. "It was the equity influence - in line with the recovery in the technology sector - and dollar/yen's failure to clear above 132 yen in the last few days."
"Weak longs were getting a little jittery," he added.
In New York, technology stocks led the advance, with the Nasdaq Composite Index jumping 3.3 percent to end at 2044.23 points, while the Dow Jones Industrial Average rose about 1 percent to 10172.14.
At 0840 GMT (3:40 p.m. Jakarta time), the U.S. dollar was quoted around 131.20 yen, below 131.70 yen late Thursday in New York, as Tokyo traders who returned from their seasonal holidays locked in profits. After hitting a new 38-month high of 132.28 yen Wednesday, the U.S. dollar has been in a downward correction.
Despite the yen's rebound, the won continued to outperform the Japanese currency, with the yen quoted below the psychologically important 10.0 won level for a full session - for the first time in almost two-and-a-half years.
Some observers believe South Korean authorities would prefer to keep the yen above 10.0 won to maintain the price competitiveness of the country's exports, but they appeared to have refrained from intervening to weaken their currency Friday.
Against the U.S. dollar, the won finished at 1,308.7 won, stronger than Thursday's close of 1,312.7 won.
Against the New Taiwan dollar, the U.S. currency finished at NT$34.995, lower than NT$35.030 Thursday, in dealings valued at US$726 million, up from Thursday's $568 million.
Dealers believe Taiwan's central bank bought the U.S. dollar when it traded around NT$34.95-NT$34.96, picking up an estimated US$200 million to keep a rein on the local currency's appreciation.
The Singapore dollar was stronger at S$1.8457 against its U.S. counterpart, compared with S$1.8493 late Thursday.
The Monetary Authority of Singapore's move Wednesday to restore a narrower policy band, within which it guides the trade- weighted local currency, has tamed the wide fluctuations evident late last year.
Still, analysts expect the Singapore dollar to gradually weaken further.
The Thai currency was firmer at 43.98 baht to the U.S. dollar, compared with 44.06 baht late Thursday.
After having earlier been bolstered by the strength of the yen, the Philippine peso relinquished all of its gains to end steady, with the U.S. dollar was well supported at 51.50 pesos by bids from oil corporations, Bank of America said.
The U.S. dollar closed at 51.63 pesos, steady compared with Thursday's close of 51.61 pesos. The U.S. dollar had earlier slipped to as low as 51.51 pesos.