Asian currencies up under protection of resilient yen
Asian currencies up under protection of resilient yen
Dow Jones, Singapore
Asian currencies continued to strengthen against the dollar Friday under the protection of a resilient yen.
A number of local factors also supported the regional currencies, all of which either finished the week either stronger or even with the dollar.
The Indonesian rupiah was the standout performer, closing the week with its strongest showing against the dollar in more than two months.
The yen managed to fend off a slew of negative economic news, getting some help from a stronger stock market to gain on the dollar.
The U.S. currency, meanwhile, was unable to capitalize on a round of strong economic data, including a report that the economy grew at a much faster pace in the fourth quarter of last year than previously thought.
The rupiah was bolstered by the strength of its regional peers and expectations of capital inflows from the pending sale of Bank Central Asia, the country's largest retail bank, traders said.
Late in Asian trading the dollar was quoted at Rp 10,110 down from Rp 10,165 late Thursday, and the dollar's weakest showing since Dec. 20.
The rupiah may also have been helped by reports that the Indonesian military would welcome the resumption of U.S. military assistance to help the country crack down on local terrorist groups with international links.
"If this ban (on U.S. assistance) were lifted, Indonesia should be able to shake off its present negative image of not doing enough to crack down on terrorism, in turn boosting further the sentiment on the rupiah," Banc of America Securities said in a note to clients.
The New Taiwan dollar's rise was attributed primarily to the yen's performance.
The U.S. dollar closed Asian trading at NT$35.103, compared with NT$35.112 late Thursday.
The New Taiwan dollar was the only Asian currency not to advance to any degree against the U.S. dollar over the whole week, finishing virtually unchanged from its close a week earlier.
Against the yen, the U.S. dollar was trading at 133.60 yen late in Asia, down from 133.93 late Thursday and 134.80 yen a week ago.
The Singapore dollar also tagged along with the yen in subdued trading ahead of the weekend, dealers said.
Near the end of Asian trading the U.S. dollar was quoted at S$1.8315, down from S$1.8330 late Thursday. It traded between S$1.8298 and S$1.8319.
The Philippine peso continued to benefit from banks unloading some of their dollar holdings ahead of the investment inflow from Japan's Kirin Brewery Ltd.
Kirin is scheduled to remit next week around $536 million as payment for a 15 peso stake in San Miguel Corp.
The dollar closed at 51.11 pesos on the Philippine Dealing System, down from 51.22 pesos Thursday.
The Thai baht also got some help from fund inflows related to portfolio investment, although trading ranges were extremely tight.
Late in Asia the dollar was quoted at 43.670 baht, down from 43.700 bath late Thursday. The dollar traded between 43.600 bath and 43.700 bath.
The South Korean won was not traded Friday because markets in Seoul were closed for a public holiday.