Asian currencies mostly up late on yen, local factors
Asian currencies mostly up late on yen, local factors
Nirmala Menon, Dow Jones, Singapore
Asian currencies were mostly stronger Tuesday, broadly guided
by the yen and supported by a spate of local economic news.
The South Korean won and the New Taiwan dollar were also
lifted by continued foreign buying of local shares.
The generally stronger tone of regional units helped the
Philippine peso recover from the previous session's 16-month
lows. Traders also believed the central bank sold dollars to
support the peso, though the monetary authority denied this late
Tuesday, after the market closed.
The dollar pulled back from an intraday high of 53.750 pesos
to close at 53.590 pesos on the Philippine Dealing System,
slightly above its day's trough of 53.570 pesos, and up from
53.850 pesos Tuesday.
Traders said the central bank intervened to sell dollars to
prevent it from testing the key 54 pesos resistance level. Some
believe the central bank sold around $40 million at between 53.65
pesos and 53.75 pesos.
The Singapore dollar rose as market players took profit on the
U.S. currency following its early weakness versus the yen.
But a lack of follow through-selling kept the U.S. unit
supported above its intraday low of S$1.7655, dealers said.
As of 0901 GMT (4.01 p.m. Jakarta time), the dollar was quoted
around S$1.7672, down from S$1.7714 late Monday.
Market players were largely unmoved by better-than-expected
industrial production data for October.
Given the downside risk on export-oriented Asian economies
from the U.S. slowdown, "clearly I'm not going to take a long
Singapore dollar position on that (the industrial output data),"
said Bhanu Baweja, currency strategist at UBS Warburg.
Industrial production rose 11.8 percent on year in October, up
from 10.7 percent in September, beating analysts' forecasts for a
7 percent-10 percent growth.
The South Korean won rose for a fourth straight session,
tracking the yen's rise and helped by some equity-related dollar
sales, traders said.
The dollar closed at 1,206.1 won, down from 1,211.5 won
Monday, after trading between 1,203.8 won and 1,208.5 won.
Dollar sales linked to foreign buying of local shares was
smaller than expected though, and that prevented the currency
from falling much beyond 1,204 won, dealers said. Buying by
importers around that level also lent some support to the dollar.
Equity-related dollar sales amounted to between $100 million
and $200 million Tuesday; many had expected the sales to be well
above $200 million.
Foreigners were net buyers of 95.3 billion won worth of local
shares during the day.
In Indonesia, the rupiah ended slightly lower Tuesday as the
U.S. dollar rebounded late in the local session on short covering
in the market and demand from local companies.
Talk of dollar selling by the Indonesian Bank Restructuring
Agency had pushed the greenback to an intraday low of Rp 8,965.
The dollar, however, eventually recovered to close at Rp 8,995,
edging up from its close Monday of Rp 8,985.
Dealers said the dollar initially slipped on market
speculation that IBRA has been selling dollars for rupiah since
early this month, before it channels the funds into state
coffers.
Demand from local companies paying maturing offshore debts
also helped supported the dollar, dealers added.
Local companies are saddled with around $60 billion in foreign
debt, a factor that constantly dogs the rupiah.
Dealers expect the dollar to trade between Rp 8,970 and Rp
9,000 Wednesday with the central bank, Bank Indonesia, expected
to step in to curb any rise above the Rp 9,000 psychologically-
key level.