Asian monies down, S$ hits 3-month low
Asian monies down, S$ hits 3-month low
Netty Ismail, Dow Jones, Singapore
Most Asian currencies were slightly weaker late Monday, with
the Singapore dollar outpacing its peers to hit near three-month
lows.
The other currencies were confined in narrow ranges amid a
dearth of fresh leads, even though the U.S. dollar remained
buoyant, amid the prevailing security and economic concerns
surrounding the region, dealers said.
Market speculation over whether the Hong Kong dollar would be
re-pegged had pushed up the risk premium on holding Hong Kong
dollar forwards at the end of last week, and revived fears of a
competitive currency devaluation in Asia. The premium eased
Monday.
Still, this failed to rein in the market's bearishness for the
Singapore dollar.
The U.S. dollar had retreated to as low as S$1.8230 - its New
York closing level Friday - before bouncing back to S$1.8260 at
0908 GMT (4.08 p.m. Jakarta time) Monday. The U.S. currency was
lower at S$1.8195 late Friday in Asia.
any dip, dealers said.
The Indonesian currency had briefly skidded to as low as Rp
10,200 to the dollar, before regaining its footing on central
bank intervention, dealers said.
State bank purchases of dollars, believed to be on behalf of
the state-owned oil and gas company Pertamina, had earlier
depressed the rupiah, dealers said.
A warning Sunday by Indonesian Foreign Minister Hassan
Wirayuda of a possible Muslim backlash if U.S. attacks in
Afghanistan continue past the start of the Muslim holy month of
Ramadhan on Nov. 17 had also unsettled the rupiah, dealers said.
The Philippine peso was weaker, but only marginally so
following suspected dollar sales by the central bank around
51.800 pesos - a level it has been defending in recent sessions,
dealers said.
The dollar closed at 51.775 pesos on the Philippine Dealing
System, slightly higher than 51.760 pesos Friday.
The South Korean won ended a touch weaker, as equity-related
dollar sales that had been supporting the currency in recent
sessions subsided, dealers said.
Dollar demand by oil importers and fresh speculative positions
against the won weighed on the South Korean currency, said Mohi-
uddin at UBS Warburg. He added that he expects the dollar to rise
above 1,305 won in the near term but stay capped below 1,310 won.
The dollar finished at 1,303.6 won, marginally up from
Friday's close of 1,302.2 won.
Against the New Taiwan dollar, the U.S. currency closed at
NT$34.543, unchanged from Friday.
The Thai currency barely moved the whole day, and was at
44.755 baht per dollar late Monday, compared with 44.740 baht
late Friday.