Asian currencies mostly higher late on yen, stock market gains
Asian currencies mostly higher late on yen, stock market gains
SINGAPORE (Dow Jones): Most Asian currencies were higher -
albeit well within recent ranges - as they found solace from the
Japanese yen's bounce and Wall Street-inspired gains on most of
the regional bourses, dealers said.
Left out in the cold, the Philippine peso and the Thai baht
were weaker, although fears of intervention kept a rein on their
losses, dealers said.
The rupiah ended higher against the U.S. dollar after
Indonesian President Abdurrahman Wahid appeared to ease political
tensions by saying rumors that he plans to sack the military
chiefs were untrue, dealers said.
But the rupiah is unlikely to sustain the gains as the
political situation remains tense.
The rupiah has been caught in a tight band while the nation
waits for Wahid to face his impeachment trial by the nation's
highest legislative body, which begins August 1.
The dollar closed at Rp 11,410 rupiah, down from Thursday's
close of Rp 11,440, after trading in a Rp 11,365-Rp 11,445 range.
Rumors that Wahid plans to impose a state of emergency if
Parliament doesn't drop its bid to oust him have unnerved markets
this week. A military reshuffle could be seen as a precursor to a
state of emergency, as the current military top brass have
refused to back such an action.
The U.S. currency found some support later in the day from
local companies buying dollars to pay offshore debts maturing at
the month-end.
Regional currencies received a fillip from the yen's jump
against the dollar, following a two-pronged warning from Japanese
officials that a weak local currency wasn't in the government's
interest.
Finance Minister Masajuro Shiokawa said the yen's rapid
decline to new 10-week lows is "troublesome" and "undesirable,"
while economy minister Heizo Takenaka said foreign-exchange rates
aren't a target for policy and resolutely shot down speculation
that a weak yen was a policy objective.
At 0830 GMT (3.30 p.m. Jakarta time), the dollar was quoted at
124.36 yen, below 124.71 yen late Thursday in New York.
In Seoul, exporter dollar sales gave the won an additional
boost, dealers said.
The dollar closed at 1,297.5 won, lower than 1,303.1 won
Thursday.
Apart from the yen's rise, fears of intervention by the
Monetary Authority of Singapore supported the Singapore dollar,
dealers said.
The U.S. dollar was at S$1.8211, lower than S$1.8219 late
Thursday.
Repeated U.S. dollar selling interest by a local bank around
S$1.8225 to S$1.8235 over the past two days sparked fears that it
may be acting on behalf of the MAS, dealers said.
Against the New Taiwan dollar, the U.S. currency ended at
NT$34.435, lower compared with NT$34.465 Thursday. Month-end
demand by local exporters for the New Taiwan dollar added to the
currency's gains, dealers said.
The dollar headed toward the psychologically important 52.50
peso mark, but rumors that the central bank might have sold about
$8 million in early trading restrained the U.S. currency's
advance, dealers said.
The central bank denied the intervention, although it warned
it was prepared to defend the currency if necessary.
The dollar closed at 52.395 pesos on the Philippine Dealing
System, up from 52.370 pesos Thursday. The dollar hit an intraday
high of 52.470 pesos.
In the Thai currency market, the dollar was at 45.280 baht,
marginally higher than 45.265 baht late Thursday, but still well
within its recent range of 45.200 baht to 45.300 baht.
With Thai officials having recently underscored their
preference for a stable baht and the country's strong reserve
position, plus expectations of stricter disclosure requirements
on baht trading, participants were hesitant to push the currency
either way too aggressively, dealers said.