Asian currencies stagnant, rupiah comes down from high
Asian currencies stagnant, rupiah comes down from high
HONG KONG (Dow Jones): Asian currencies barely moved on
Wednesday, as trading in regional markets all but ground to a
halt ahead of the release later in the day of U.S. inflation
figures.
Taking their cue from the major foreign exchange markets,
dealers shied away from taking positions in the regional
currencies, lest they be caught wrong-footed by any surprises in
the U.S. data.
What little activity there was consisted largely of regional
currency buying by foreign equity market investors, offset by
dollar purchases from bank traders looking to square off their
short positions in the U.S. currency.
Rupiah-supportive comments from Indonesia's senior economics
minister, Ginandjar Kartasasmita, and Bank Indonesia governor
Sjahril Sabirin, had little discernible impact on the exchange
rate of the Indonesian currency.
Both men said the rupiah has the potential to strengthen
further, with the dollar possibly slipping below the Rp 7,000
mark.
But after dropping to a fresh eight-month low at levels below
Rp 7,200 in thin overnight dealing, the U.S. dollar recovered
slightly during Asian hours Wednesday, rising to Rp 7,295 towards
the end of local trading, up from Rp 7,252 late the previous day.
While traders agreed that the Indonesian currency has room to
strengthen further in the near term, they said that dollar bids
at Rp 7,200 from Hong Kong-based banks looking to book profits on
short positions in the U.S. currency supported the dollar
Wednesday.
Although profit-taking could drive the U.S. currency higher to
around Rp 7,500, offers at that level are likely to push the U.S.
currency lower once again, said one U.S. bank trader in
Singapore.
Elsewhere in the region, both the Singapore dollar and the
Thai baht ended Asian trading hours unchanged on the day.
Bids placed by local banks at S$1.7090 supported the U.S.
currency against the Singapore dollar, while offers from European
banks, placed on behalf of equity investors, according to
traders, capped the market at S$1.7115.
Late in Asian hours, the U.S. dollar was quoted at S$1.7095,
unchanged from the previous day.
Against the baht, the U.S. dollar ended Asian trading flat at
36.9600 baht, having traded within a 36.95 baht to 36.97 band the
entire day.
The Philippine peso nudged slightly higher on the day. At the
local close, the U.S. dollar was quoted at 37.790 pesos, down
slightly from 37.820 pesos at Tuesday's close.
In North Asia, both the South Korean won and the New Taiwan
dollar continued to edge higher, supported by trade flows and
positive investor sentiment.
Against the won, the U.S. dollar finished at 1,164.30 won,
down from 1,165.90 won at the previous close, despite steady
government-directed dollar buying by state-owned banks.
Against the Taiwanese currency, the U.S. dollar ended local
trading at a fresh four-month low of NT$32.374, down from
NT$32.384 Tuesday.
In London, the euro single currency fell back below 1.04
dollars here early on Wednesday as the market nervously awaited
publication of U.S. inflation figures later in the day.
The euro fell against the dollar in anticipation of strong
economic data from the United States.
An analyst at ABN Amro bank, Jesper Dannesboe, said: "The
market is betting that US data will be on the strong side in the
next couple of weeks."
The euro was being traded at 1.0387 dollars 1.0431, 125.20 yen
(125.75), 0.6535 pounds (0.6510), 1.5955 Swiss francs (1.5966).
The dollar was being traded at 120.43 yen (120.52), 1.5354
Swiss francs (1.5299).
Sterling was being traded at 1.5899 dollars (1.5965), 191.52
yen (192.53) and 2.4424 Swiss francs (2.4436).