Asian currencies mostly up late as stock markets surge
Asian currencies mostly up late as stock markets surge
TOKYO (Dow Jones): Most Asian currencies rose modestly late Monday, spurred by the surge in many of Asia's stock markets despite the yen's slight fall against the U.S. dollar.
But with important U.S. economic data out later this week, the Asian currencies are expected to drift sideways for the rest of the week, analysts said.
The Indonesian rupiah closed lower Monday as local companies bought dollars to service their debts, traders said.
News that the government has signed a new agreement with the International Monetary Fund had no affect on the market as the deal was widely expected.
The dollar fell to an intraday low of Rp 8,575 on mild rupiah buying ahead of the IMF pact, but recovered in afternoon trade to close at Rp 8,740 from Rp 8,700 Friday.
"The IMF news was already discounted by the market," said a trader with a Jakarta-based foreign bank.
The agreement paves the way for the IMF to resume lending to Indonesia under its suspended US$5 billion program.
The letter of intent outlines a series of economic reforms the government must complete in return for loans. The document will go before the IMF's board in Washington in two weeks. After approval, the fund will hand Indonesia the next $400 million in loans under the program.
Traders expect the dollar to trade between Rp 8,675 and Rp 8,775 Tuesday.
The dollar was also quoted at 120.31 yen, slightly above 120.15 yen late Friday in New York and above 119.80 yen late Friday in Asia.
In Taipei, the New Taiwan dollar benefited from the local stock market's rally, which was partly fueled by a consensus achieved by the Taiwanese president's economic advisers Sunday to relax bans on links with China.
The presidential economic development advisory council concluded a three-day summit in Taipei Sunday by deciding that the restrictive "no haste, be patient" China investment policy should be replaced by "proactive opening and effective management."
"Taiwan's stock market had a nice recovery today. We might see the U.S. dollar probe good technical support at NT$34.50 this week if the stock market continues its gains," BNP Paribas Singapore's Loo said.
The Korean won edged higher against the U.S. currency in the wake of the local stock market's gains late Monday after the surge in U.S. stock markets Friday.
The U.S. dollar was quoted at 1,280.80 won, down from 1,281.20 won Friday.
The Thai baht extended its recent gains against the U.S. dollar, rising to another five-month high late Monday after setting a new five-month high of 44.315 baht Friday.
The baht's rise was helped by the Thailand stock market's gains on the back of follow-through buying from Friday and expectations that Prime Minister Thaksin Shinawatra will be seeking extra funds from China during a visit which begins Monday.
The Singapore dollar tracked most other Asian currencies higher on some unwinding of long U.S. dollar positions, analysts said.
But the Singapore currency's gains were somewhat curbed by very weak industrial output data for July.
Late Monday, the U.S. dollar was quoted at S$1.7483, lower than S$1.7498 Friday in Asia.
The Philippine peso bucked the overall trend of regional currency strength, falling slightly against the U.S. dollar on limited demand for the U.S. currency from companies covering their month-end requirements.
But the peso regained some of its lost ground as the central bank stepped in to support the local currency, dealers said.
The dollar was last at 51.130 pesos, higher than 51.050 pesos Friday.