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.