Asian monies mixed against dollar
Asian monies mixed against dollar
SINGAPORE (AFP): Asian currencies ended mixed against the U.S.
dollar Thursday, while the Japanese yen pulled back from earlier
highs as trade resumed in Tokyo after a three-day holiday,
dealers said.
The Singapore dollar closed higher at 1.6993 from 1.7012 the
day before, the Indonesian rupiah stood at 8,075 from 8,115,
while the Taiwan dollar was marginally higher at 32.742 from
32.749.
The Philippine peso closed lower at 38.00 from 37.79, the
South Korean won at 1,201.35 from 1,197, and the Thai baht at
37.025 from 36.81.
The yen ended trade here off its highs around 120.50 to the US
dollar, up from 120.52 in New York overnight, and 120.87 in
Singapore on Wednesday.
A dealer with a European bank here said the yen was boosted by
Tokyo's expectations of new stimulus measures from Japan
following Prime Minister Keizo Obuchi's summit with U.S.
President Bill Clinton this week.
The strength of regional currencies against the U.S. dollar in
the past few days has been attributed to foreign fund inflows in
the stock markets, although trading was subdued due to the
closure of markets in Tokyo from Monday to Wednesday.
In Europe, the euro rose sharply early on Thursday, as dealers
warmed to hopes of a diplomatic settlement to the war in
Yugoslavia, analysts said.
The euro rose back above 1.08 to the dollar for the first time
since mid-April.
The single currency was being traded at 1.0815 dollars from
1.0720 dollars late on Wednesday.
The dollar also fell slightly against the yen after the Tokyo
market reopened following three days of public holidays.
The dollar was being traded at 120.50 yen from 120.46 yen
earlier in Tokyo and 120.91 yen here late on Wednesday.
Sterling held firm against the dollar but fell slightly
against the euro ahead of the latest interest rate decision from
the Bank of England.
A currency strategist at ABN Amro bank, Jesper Dannesboe,
said: "The market concluded that the probability of a peace deal
in Kosovo has increased substantially."
The euro began to rise on Wednesday as dealers welcomed press
reports suggesting that the Yugoslav leader Slobodan Milosevic
would accept a United Nations military presence in Kosovo.
But Dannesboe said that "the euro will recover very slowly".
He warned that the euro might not yet have reached its lowest
level against the dollar.
Analysts were waiting for a speech by US Federal Reserve chief
Alan Greenspan later in the session.
The markets were also awaiting the latest interest rate
decisions from the Bank of England and the European Central Bank
later in the day.
Dannesboe said that most people did not expect a reduction in
British interest rates but added that there was still a chance of
cheaper money.
"The market is not really looking for a cut but has not really
ruled it out," the analyst said.
He added that either way "it's not really clear what'll happen
to sterling".
The strategist said that if rates are reduced to 5.0 percent,
the markets might conclude that there will not be any further
rate cuts in the current cycle, thus supporting sterling, but
equally, if rates are left on hold they will at 5.25 percent be
far higher than euro-zone borrowing costs.
The euro was being traded at 1.0815 dollars from 1.0720,
130.35 yen from 129.65, 0.6591 pounds from 0.6565 and 1.6088
Swiss francs from 1.6055.
The dollar was being traded at 120.50 yen (120.91) and 1.4867
Swiss francs (1.4969).
Sterling was being traded at 1.6387 dollars (1.6325), 197.50
yen (197.37) and 2.4390 Swiss francs (2.4452).