Asian currencies mostly lower
Asian currencies mostly lower
SINGAPORE (Dow Jones): Most Asian currencies had drifted lower late Tuesday as the dollar held on to its overnight gains against the yen, although caution ahead of the U.S. Federal Reserve's decision on interest rates confined trading to narrow ranges, dealers said.
The Indonesian rupiah ended slightly lower against the U.S. dollar, but off intraday lows as investors took profit on the U.S. unit's gains, traders said.
The dollar closed at Rp 11,460, up slightly from Rp 11,425, Monday's close, but down from the intraday high of Rp 11,580.
The U.S. currency hit the highs as local companies bought dollars heavily to either repay debt or fund imports.
Investors are also concerned about Indonesia's deepening political crisis, and would rather hold on to dollars for safety than rupiah, traders said.
Later in the global trading day, the Fed's policy-setting arm, the Federal Open Market Committee, is widely expected to slash short-term interest rates for the fifth time since the start of the year.
The market has priced in another interest rate cut of up to 50 basis points, dealers said.
Market participants will also be looking out for hints by policymakers, in their post-meeting statement Tuesday, that the Fed's aggressive easing campaign in recent months may be drawing to an end.
After treading water earlier in the day, the Philippine peso edged higher late Tuesday as Arroyo's coalition appeared to take the lead in the midterm elections, dealers said.
On the Philippine Dealing System, the dollar closed at 50.18 pesos, down from Friday's close of 50.30 pesos.
Manila markets were closed Monday to enable 35 million voters to go to the polls in a crucial race for 13 of 24 Senate seats, thousands of municipal and provincial posts and the entire House of Representatives.
Although fears of widespread violence during the elections proved to be unfounded - the dozens of killings in election- related violence weren't much higher than the previous election in 1998 - the market's relief wasn't enough to boost the peso at the start of the day
Until there is a clear outcome of the midterm elections, which investors hope will give Arroyo a clear mandate to reform the economy, investors will remain wary, dealers said. The final vote tally isn't expected until later this week.
Other Asian currencies wavered under the sway of the yen, which remained depressed below Y123 against the dollar after falling below that level overnight.
At 0830 GMT (3:30 p.m. Jakarta time), the dollar was quoted at Y123.26, little changed from Y123.28 late Monday in New York. The dollar was at Y122.67 late Monday in Tokyo.
The Singapore dollar was at S$1.8182 against its U.S. counterpart, slightly weaker compared with S$1.8151 late Monday.
Fears of provoking intervention by the Monetary Authority of Singapore - which had last week mounted an aggressive defense of the local currency - kept the U.S. dollar below S$1.8200, dealers said.
In Seoul, the dollar finished at 1,303.7 won, up from 1,297.4 won Monday.
Against the New Taiwan dollar, the U.S. dollar closed at NT$32.930, up from NT32.882 Monday.
Weighed by the Singapore dollar and the yen, the Thai currency weakened slightly to 45.515 baht to the U.S. dollar, from 45.485 baht late Monday.