Asian monies mixed late, peso strengthens
Asian monies mixed late, peso strengthens
Alan Yonan Jr., Dow Jones, Singapore
Strong economic data out of the Philippines Thursday helped lift the peso to its strongest close in more than two weeks.
Other Asian currencies were mixed as the dollar's early rally in the region was cut short by a surge in the yen.
The Philippine government reported better-than-expected 4.5 percent economic growth for the second quarter compared with a year earlier.
The dollar closed at 51.760 peso, down from 51.900 peso at Wednesday's close in what was its weakest finish since Aug. 12.
The government had projected growth of 3.8 percent to 4 percent in the second quarter from a year ago, compared with a 3.7 percent growth rate in the first quarter.
Some market players holding long dollar positions were probably caught by surprise, and then had to liquidate those positions, said James Malcolm, currency strategist at JP Morgan.
With little economic news to drive trading in other regional currency markets, activity was largely dictated by moves in dollar/yen.
The dollar traded as high as 119 yen early in the session before steadily falling to an intraday low of 117.60 yen.
Talk of Japanese repatriation of funds invested in U.S. Treasurys, as well as exporter dollar sales and the Bush administration's hawkish rhetoric toward Iraq were blamed on the dollar's fall.
The U.S. dollar closed at NT$34.193, compared with NT$34.230 late Wednesday.
Modest selling of U.S. dollars by exporters in the final days of the month also added to the New Taiwan's strength.
The story was much the same with the South Korean won, which initially traded at its weakest level in nearly three weeks before recovering to finish the day virtually unchanged.
The U.S. currency hit an intraday high of 1,209 won early in the session as foreigner investors continued to dump Korean stocks and convert the proceeds into dollars.
So far this week, foreigners have unloaded over a net 490 billion won of local shares.
But the influence of the stronger yen helped turn things around for the won, pushing the dollar to its closing level of 1,201.5 won, compared with 1,201.0 won a day earlier.
The Singapore dollar also rebounded on the yen's heels. The U.S. dollar pushed through the psychologically important S$1.75 level in morning trade before reversing course.
Late in Asia the U.S. dollar was quoted at S$1.7485, compared with S$1.7488 late Wednesday.
The Indonesian rupiah ended little changed against the dollar Thursday as the market lacked fresh incentives to trade on, dealers said.
The rupiah was little changed in uneventful trading. Near the end of Asian trading the dollar was quoted at Rp 8,875, compared with Rp 8,880 late Wednesday.
Against the baht, the dollar was quoted at 42.225 baht, unchanged from Wednesday's close.