Asian currencies quiet but won hits high for the year
Asian currencies quiet but won hits high for the year
HONG KONG (Dow Jones): The South Korean won surged in response to a rash of bullish economic data, hitting its highest level since January during intraday trading Thursday.
Dealing in other Asian foreign exchange markets was quieter. The New Taiwan dollar closed almost unchanged on relatively low transaction volumes.
Indonesian rupiah ended steady against the dollar in narrow range-bound trade Thursday as the market lacked fresh direction, dealers said.
The dollar closed at Rp 7,275 in Asia, down only a touch from Rp 7,280 late Wednesday in Asia on offers from offshore participants.
Dealers said that offshore banks started Thursday trading by offering the dollar, which drove the U.S. unit down to Rp 7,240. But year-end demand for dollars from local companies and banks pushed the dollar up to Rp 7,290 before settling down at Rp 7,275.
"It's a relatively quiet session today," said a dealer with a local bank." I think the dollar will trade between a narrow range again Friday."
Dealers said that although the market remains concerned with the separatism problem in the troubled Aceh province ahead of the expected rally Saturday to commemorate the anniversary of the rebel Free Aceh Movement, many participants don't expect major clashes between the security forces with Acehnese during the weekend.
Thursday's rapid rise in the won, propelled in part by a marked dollar sell-off in the offshore non-deliverable forward market, drove the South Korean currency to its strongest level since January, prompting verbal intervention from the Korean Finance and Economy Ministry
Thursday's won surge followed the release of a batch of positive economic data Wednesday showing a 22.2 percent rise in exports in November, record foreign reserves of near $70 billion and a relatively subdued inflation rate of just 1.4 percent.
In the onshore spot market the U.S. dollar ended the session at 1,149.70 won, down from 1,157.30 won at Wednesday's close.
In other Asian markets, the New Taiwan dollar finished little changed, with the U.S. currency ending the day at NT$31.667, compared with NT$31.669 Wednesday.
The Philippine peso strengthened following the release of data showing a 36 percent surge in October's exports compared with the same month last year.
Although worries about the Philippines' overshooting budget deficit, which hit 96.80 billion pesos over the 10 months to October, will continue to weigh on the peso, dealers said the currency is receiving support from remittances by expatriate workers.
At the Manila close, the U.S. dollar was quoted at 40.795 pesos, down from 40.860 pesos Wednesday.
The Singapore dollar ended Asian hours weaker after the U.S. currency encountered heavy bids at its intraday low of S$1.6785, squeezing players holding short positions and propelling the U.S. dollar sharply higher to S$1.6840. Late Wednesday, the U.S. dollar was quoted at S$1.6782.
Dealing in the Thai baht and the Indonesian rupiah was quiet. Toward the end of Asian trading, the dollar was quoted at 38.9550 baht, up a touch from 38.8800 baht the day before.