Asian monies
Asian monies down late, peso ends at 15-month low
Nirmala Menon Dow Jones Singapore
Most Asian currencies retreated Thursday as the U.S. dollar extended its overnight gains against the yen, with the Philippine peso closing at a 15-month trough, weighed down by the government's fiscal woes.
The dollar ended at 53.370 pesos on the Philippine Dealing System - its highest close since Aug. 3, 2001 - and up from 53.220 pesos Wednesday after trading between 53.260 pesos and 53.430 pesos.
Traders noted market positioning by some banks ahead of the government's 10-month budget deficit data next week.
Generally, across the region's currency markets, market players covered short dollar positions after the U.S. unit firmed further as worries about an impending war in Iraq subsided.
But trading ranges remained tight as the early spate of dollar buying wasn't sustained into the afternoon, traders said.
"Everyone expected the short covering, but there hasn't been very much follow-through. It seems to have stalled in the afternoon," said a trader at a European bank in Singapore.
Market players are now waiting for several important economic data due out of the U.S. later Thursday and Friday for clues about the health the economy.
Wall Street's reaction to those data will also be closely watched as the U.S. equities market is likely be a key factor that will determine the direction of regional currencies, analysts say.
The New Taiwan dollar also tracked the yen lower, with offshore players actively buying the U.S. currency.
The dollar ended at NT$34.736, up from Wednesday's NT$34.619. Intraday, it moved between NT$34.674 and NT$34.745.
All eyes are now on the island's third-quarter gross domestic product data, scheduled to be released after the market's close Friday.
Taiwan's GDP likely expanded 4.21 percent on year in the July- September period, making it the fastest growth rate since the third quarter of 2000, according to a Dow Jones Newswires poll.
The Singapore dollar weakened in tandem with the yen but recovered some lost ground late in the day.
At 1039 GMT (6.39 pm Jakarta time), the U.S. dollar was quoted around S$1.7635 compared with S$1.7637 late Wednesday. During the Asian session, it traded between S$1.7655 and S$1.7680.
The outlook for the local dollar remains weak and speculation was still rife that the Monetary Authority of Singapore may loosen its currently neutral monetary policy bias, dealers said.
The government will issue its assessment of third-quarter economic performance next week, and some analysts say that might also be the time the MAS gives some hint of policy direction, ahead of its scheduled policy review in January.
In Thailand, the dollar ended the Asian session at 43.385 baht, up from around 43.290 baht late Wednesday, on the weaker yen and dollar short covering by banks.
The dollar hovered around its intraday low of 43.350 baht early in the day after breaching the 43.200 baht resistance overnight.
"The fact that the 43.200 baht resistance didn't hold triggered stop-loss purchases by banks," said a Bangkok trader.
The dollar peaked at 43.450 baht in the afternoon before profit-taking and exporter selling pulled it back from that level.
But the rupiah edged up for the fifth straight session amid talk the Indonesian Bank Restructuring Agency, or IBRA, was selling dollars. The dollar ended at Rp 9,025, down from Rp 9,055 Wednesday.
"The amount of dollars IBRA sold seemed to be significant," said a dealer with a local bank.
Dealers said IBRA's dollar sales overcame demand from local companies, which were buying dollars to repay maturing offshore debts.
The agency's dollar sales have helped push the dollar down to near Rp 9,010 - the level at which it was trading before the Oct. 12 Bali bombings drove it up to Rp 9,400.
IBRA is tasked to raise over Rp 46 trillion this year to help finance the state budget deficit.