Asian currencies rise across the board
Asian currencies rise across the board
HONG KONG (Dow Jones): Asian currencies finished higher across
the board Friday, lifted by a stronger yen and by moderately
improved sentiment toward individual countries in the region.
Market players were uncertain, however, whether all the
regionals would be able to sustain the rally into the coming
week.
Even in the short term, analysts argued, Asian currencies will
show a clear divergence between those perceived as "new economy"
plays and those seen as representing "old economies."
"That's all that anybody is talking about at the moment," said
Vincent Low, foreign exchange and interest rate strategist at
Merrill Lynch in Singapore.
"Investors are buying into the currencies which offer liquid
proxies for new economy technology stock plays."
The relationship between the foreign exchange market and
investors' love affair with all things technological is clearest
in South Korea, where over the last six months the won has shown
a 95 percent correlation with the benchmark Kospi stock index,
says Low.
The link held Friday, with the won regaining most of the
previous day's losses as local equity prices reversed Thursday's
slide.
At the end of the Seoul trading session, the U.S. dollar was
quoted against the won at 1,119.70 won, down from 1,122.40 won
the previous day.
The Indonesian rupiah closed higher against the dollar in
lethargic trading Friday, taking its cue from the appreciation of
the other regional currencies.
After trading between Rp 7,360 and 7,410 Friday, the dollar
closed at Rp 7,380 in Asia, up from Rp 7,395 late Thursday in
Asia.
Dealers said the Indonesian Bank Restructuring agency was seen
selling the dollar early Friday at around Rp 7,380, pushing the
U.S. unit down to its intraday low. However, as the IBRA selling
subsided, higher bids for the dollar emerged, helping it climb to
its closing of Rp 7,380.
They added that the government agency was thought to be
selling the dollar since Monday.
In recent months, the New Taiwan dollar has also benefited
from foreign fund inflows as investors have bought into
technology stocks on the Taipei market.
The flow continued unabated Friday. At the close, the U.S.
dollar had been pushed down to NT$30.736, from NT$30.764 the day
before.
On Friday the baht edged higher, reflecting an improvement in
the market's view of the case. Near the end of Asian trade, the
dollar was quoted against the Thai currency at 37.840 baht, down
from 37.915 baht late on Thursday.
The Singapore dollar was also pushed higher, with the U.S.
dollar falling to S$1.7062, from S$1.7110 the previous day.
On the Philippine dealing System the peso continued to rise
following a sharp sell-off earlier in the week triggered by a
stock market scandal.
Dealers attributed the recovery partly to corporate customers
taking advantage of the currency's earlier weakness, but warned
that the peso remains vulnerable.
At the close the dollar was at 40.890 pesos, down from 40.975
pesos at the end of Thursday's session.