Asian currencies mostly up late
Asian currencies mostly up late
Netty Ismail, Singapore, Dow Jones
Most Asian currencies were stronger late Thursday - several
hit multi-month highs - as the U.S. currency continued to take a
drubbing in international foreign exchange markets, particularly
against the yen.
The dollar sank below 129 yen for the first time since March
15, and was quoted at 128.86 yen at 0913 GMT (4.13 p.m. Jakarta
time), lower than 129.64 yen in New York and 130.28 yen in Tokyo
late Wednesday.
"The stronger yen is part of that soft international dollar
story," said David Simmonds, a regional currency strategist at
Salomon Smith Barney/Citibank. "That allows Asian currencies to
gain ground against the dollar."
Still, Asian currency bulls have become increasingly wary of
provoking the region's central banks, some of which have started
to show unease over their respective currencies inexorable rise
of late.
The Singapore dollar surged to a six-month high after muscling
through the key resistance level around S$1.8120 - the 200-day
moving average - against the U.S. currency.
Even so, the Singapore dollar failed to take out the
psychologically important S$1.8100 level, as foreign exchange
participants were wary of testing the resolve of the local
monetary authority, dealers said.
The Singapore dollar rose to an intraday peak of S$1.8108 -
its strongest level since mid-October - before retreating to
consolidate around S$1.8120 around 1000 GMT (5 p.m. Jakarta
time).
Late Wednesday, the Singapore dollar was weaker at S$1.8177.
Central bank intervention and a 1.6 percent slide on the
Taipei bourse kept a rein on the New Taiwan dollar's rise to
fresh four-month highs, dealers said.
The U.S. dollar closed at NT$34.783, lower than NT$34.808
Wednesday. Dealings totaled US$584 million.
Taiwan's central bank bought an estimated US$250 million in
the market to stymie the local currency's ascent, dealers said.
Buoyed in part by dollar remittances from Filipinos working
overseas, the Philippine peso strengthened to 50.835 pesos to the
dollar, compared with 50.895 pesos Wednesday.
The Thai currency was quoted at 43.210 baht to the dollar,
compared with 43.26 baht late Wednesday.
Left out in the cold, the Indonesian currency was dragged down
by demand for dollars by corporations needing to pay their
maturing debts.
An upgrade in Indonesia's B3 sovereign ratings outlook by
Moody's Investors Service Inc. to positive from stable failed to
inspire the rupiah, which has already strengthened sharply since
the start of the year to outperform its regional peers.
The rupiah was quoted at Rp 9,350 against the dollar compared
with Rp 9,255 late Wednesday.