Asian currencies up late, lifted by yen and local stock markets
Asian currencies up late, lifted by yen and local stock markets
Alan Yonan, Dow Jones, Singapore
The two way assault of a stronger yen and surging regional
stock markets sent the U.S. dollar scrambling for cover in Asia
Monday.
Asian currencies were stronger across the board against the
U.S. dollar, with the South Korean won and New Taiwan dollar
benefiting from massive net inflows of foreign funds into the
local bourses.
The Indonesian rupiah shared the spotlight with its surprising
advance to a fresh 12-week high against the U.S. unit. The
Singapore dollar, Thai baht and Philippine peso rounded out the
attack on the U.S. dollar.
The firmer tone for Asian currencies was partly fueled by the
yen, which strengthened on the heels of 5.9 percent jump in the
Nikkei 225 stock average to a six-month high.
Against the yen, the U.S. dollar traded as low as 132.62 yen
Monday before settling around 132.70 yen late in the session.
That was down from 133.34 yen late Friday in New York and 133.60
yen late Friday in Tokyo.
"It was a combination of the stronger yen and local stock
markets driving Asian currencies today," said Mansour Mohi-uddin,
currency strategist at UBS Warburg.
The Nikkei's rally was fueled by strong gains in U.S. shares
last week and by the Japanese government's tightening of rules on
short-selling.
Demand for New Taiwan dollars was fueled by continued equity
inflows. Foreign institutional investors bought a net 6.20
billion New Taiwan dollars of shares on the Taiwan Stock Exchange
Monday, helping the exchange's main index close 3.4 percent
higher for the day.
The firmer yen also triggered buying of New Taiwan dollars.
The Taiwan currency often tracks movements in the yen because the
of close economic ties between the two countries and the fact
that they compete in many of the same export markets.
At the close of trading, the U.S. dollar was quoted at
NT$35.090, compared with NT$35.103 late Friday.
The story was much the same in Seoul, Singapore and Bangkok,
dealers said.
The dollar ended at 1,318.2 won, down from Thursday's close of
1,323.8 won. Markets in Seoul were closed Friday for a public
holiday.
Against the Singapore dollar, the U.S. currency was quoted at
S$1.8292 late in Asian trading, down from S$1.8315 late Friday.
Near the end of Asian trading the dollar was quoted at 43.600
baht, down from 43.670 baht late Friday.
The Indonesian rupiah continued its steady climb against the
U.S. dollar that began last week.
The dollar closed at Rp 10,075, down from its close Friday at
Rp 10,095.
Helping the rupiah has been progress in the government's
efforts to sell its 51 percent stake in Bank Central Asia, the country's
largest listed bank.
The peso closed at its strongest level this year, buoyed by
gains in regional currencies, weak corporate demand for the U.S.
dollar and expectations of a revision in Standard & Poor's
negative outlook on the country.
The dollar closed at 51.065 pesos on the Philippine Dealing
System, down from 51.110 pesos Friday. It was the lowest closing
level for the dollar since Dec. 20, 2001, when it ended at 50.850
pesos.