Asian monies down late, softer yen lifts dollar
Asian monies down late, softer yen lifts dollar
Alan Yonan Jr., Dow Jones, Singapore
Most Asian currencies weakened modestly or were little changed
Friday as a softer yen helped the dollar regain some ground in
the region after it had struggled for most of the week.
The South Korean won, Thai baht and New Taiwan dollar fell
against the U.S. currency. The Indonesian rupiah and Singapore
dollar were little changed. The peso wasn't traded because
markets in Manila were closed for a holiday.
Trading ranges were fairly narrow and volumes light as market
players exercised caution ahead of key economic data to be
released in the U.S. overnight, and a Federal Reserve Board
meeting on interest rates next week.
The dollar had fallen to multi-week lows against several Asian
currencies on Thursday after a batch of weak economic reports
raised new questions about the U.S. recovery.
But the dollar showed some resilience against the yen Friday
as importers and investors bought the U.S. currency amid concerns
over Japan's bad loan problem and tax revenue collection.
Late in Asia the dollar was quoted at 122.74 yen, up from
122.53 yen late Thursday in New York.
The won was pressured by dollar demand from importers and the
yen's slight decline, said market participants.
The dollar finished at 1,225.2 won, up from Thursday's close
at a six-week low of 1,221.6 won.
Most of Friday's action happened in the morning, when
importers bid up the U.S. unit and sent investors scrambling to
cover their short dollar positions, dealers said.
The Singapore dollar was steady in thin trading ahead of a
long weekend in Singapore and Japan. Markets in the two countries
will be closed Monday for holidays.
Near the end of Asian trading the U.S. dollar was quoted at
S$1.7672, compared with S$1.7670 late Thursday.
The U.S. dollar still remains relatively undervalued against
its Singapore counterpart, "making it an attractive buy given the
recent proliferation of weak (local) economic data," JPMorgan
Chase said in a research note.
An index of manufacturing activity released by the Singapore
Institute of Purchasing & Materials Management Friday fell to
50.6 percent in October from 51.6 percent in September, lending
weight to the view that recovery in the local manufacturing
sector is slowing.
A government report released Thursday showed Singapore's
unemployment rate rose to a 15-year high of 4.8 percent in
September.
A 1.7 percent decline in the local stock market weighed on
sentiment toward the New Taiwan dollar, which came under selling
pressure in the offshore market for non-deliverable forwards.
The U.S. dollar closed at NT$34.795, up from NT$34.761 at the
previous close, in scant volume of US$316 million.
The Indonesian central bank helped shield the rupiah from
solid dollar demand, dealers said.
Late in Asia the dollar was quoted at Rp 9,225, compared with
Rp 9,230 late Thursday.
The dollar was well bid throughout the session, but Bank
Indonesia was said to have steadfastly protected the local
currency.
Dealers said the market didn't react to news that Indonesia's
trade surplus swelled to a larger-than-expected $2.2 billion in
September.
The baht tracked the yen lower as offshore players inspired by
the dollar's gains against the yen also bought the U.S. currency
against the baht.
Near the end of Asian trading the dollar was quoted at 43.330
baht, up from 43.305 baht late Thursday.