Asian currencies mostly up late on yen, central bank fears
Asian currencies mostly up late on yen, central bank fears
SINGAPORE (Dow Jones): The yen's rebound and Wall Street-
inspired gains on many of the region's bourses lifted most Asian
currencies late Thursday, dealers said.
Fears of a potential backlash from some of the central banks
also continued to provide respite for currencies like the
Singapore dollar and Thai baht, dealers said.
The Indonesian rupiah ended higher Thursday but its gains were
fragile as the market waits to see whether President Abdurrahman
Wahid will be able to strike a political compromise with his
opponents.
The dollar closed at Rp 11,355 Thursday, down from than its
close Wednesday at Rp 11,413.
The U.S. unit traded in a range of Rp 11,280 to Rp 11,350.
In early trade, the dollar moved lower as investors squared
long positions in the U.S. currency.
Left out in the cold, the Philippine peso lost ground on
increasing concerns about the final tally of Monday's elections
and uncertainty over whether President Gloria Macapagal-Arroyo's
candidates could retain their lead in the race for the 13 Senate
seats as the votes are counted.
The Singapore dollar continued to outpace the rest of its
regional peers, amid fears of testing the central bank's resolve
after - in an extremely rare move - it confirmed Tuesday the
market's suspicions that it intervened last week, dealers said.
The MAS also warned of further intervention to offset any
currency weakness arising from strong demand for U.S. dollars by
companies seeking to fund their overseas acquisitions, while
reiterating its policy of allowing "a gradual, modest
appreciation of the trade-weighted Singapore dollar."
"Nervous longs from offshore speculative funds are getting
out," said a dealer at a European bank. "They're concerned about
the MAS coming in time and time again."
At 0915 GMT (4.15 p.m. Jakarta time), the U.S. dollar was at
S$1.8095, down from S$1.8130 in Asia late Wednesday .
Against the yen, the U.S. dollar was quoted at Y123.17, below
Y123.54 in New York late Wednesday.
The Thai currency rose slightly after the central bank
announced late Wednesday that it is tightening offshore baht
trading regulations, effective July 2, as part of its attempts to
monitor the market and limit speculation.
"There is some wariness about any indication to go down toward
the controls route in terms of alleviating the pressure on the
currency," said Simmonds at Salomon Smith Barney/Citibank.
But the baht's gains were capped by concerns over Thailand's
bleak economic outlook and Prime Minister Thaksin Shinawatra's
political fate.
The dollar was quoted at 45.335 baht, down from 45.365 baht
late Wednesday.
The yen's rebound and foreign equity fund inflows into their
respective bourses bolstered the New Taiwan dollar and the South
Korean won, dealers said.
But Taiwan's central bank was suspected to have bought U.S.
dollars to slow the New Taiwan dollar's rise, dealers said. The
New Taiwan dollar has lagged behind the recent rise in the
regional currencies.
The U.S. dollar closed at NT$32.952, down from NT$32.957
Wednesday, as the local benchmark stock index ended 1.2 percent
higher.
In Seoul, the dollar ended at 1,301.9 won, down from 1,309.3
won Wednesday, as the benchmark Korea Composite Index leapt 4.2
percent Thursday.