Asian monies mixed late, rupiah unchaged
Asian monies mixed late, rupiah unchaged
Alan Yonan Jr., Dow Jones, Singapore
Asian currencies were mixed against the dollar in quiet
trading ahead of the Thanksgiving holiday in the U.S.
Currencies were confined in narrow ranges as players showed a
reluctance to stake out large positions because of the closure of
U.S. financial markets on Thursday.
"With the U.S. on Thanksgiving holiday and no U.S. data
scheduled for (Friday), trading is likely to be thin and
directionless for the rest of the week," UBS Warburg said in a
note to clients.
The New Taiwan dollar, Singapore dollar and Thai baht
strengthened slightly. The South Korean won, Philippine peso and
Indonesian rupiah were little changed.
The U.S. dollar has been on a general upswing lately,
underpinned by new signs of health in the U.S. stock markets and
overall economy, analysts say.
The Dow Jones Industrial Average closed above 8,900 Wednesday
following economic reports showing increased manufacturing
activity and a strengthening job market.
"With the outlook for the U.S. economy improving, the outlook
for the U.S. currency is looking better too," Deutsche Bank
currency strategist Marshall Gittler said in a daily research
note.
The New Taiwan dollar drifted higher as exporters sold U.S.
dollars to meet month-end payrolls, dealers said.
The U.S. dollar ended at NT$34.805, down slightly from
Wednesday's NT$34.820.
Dealers said low trading volumes reflected the lack of any
major news and the expected market closure in the U.S.
Against the peso, the dollar closed at 53.590 pesos compared
with 53.600 pesos late Wednesday.
Sentiment toward the peso remained weak following the
currency's decline to a 16-month low earlier this week.
The government's widening budget deficit, political woes
arising from bribery allegations against a Cabinet official, and
security concerns, are the major factors weighing on the
currency.
The Singapore dollar was steady for most of the day, but moved
higher late in the Asian session when U.S. dollar sellers emerged
at the start of trading in Europe.
Near the end of Asian trading the U.S. dollar was quoted at
S$1.7655, down from S$1.7674 late Wednesday in Asia.
Market players in Singapore were apprehensive about bidding
the local currency up much further on views that at current
levels, the Singapore dollar may be trading in the stronger half
of the Monetary Authority of Singapore's policy band.
The dollar selling in Europe was driven by news of attacks
against an Israeli-owned hotel and an Israeli airliner in Kenya,
traders said.
Against the won, the dollar closed at 1,207.8 won, compared
with 1,207.6 won at Wednesday's finish.
The dollar opened stronger following its overnight rise
against the yen. But foreigners' heavy buying of South Korean
stocks pressured the dollar lower as the session progressed.
On Thursday, foreign investors were net buyers of 365.3
billion won in shares, the third largest amount so far this year
excluding after-hours trade.
In Jakarta, the dollar initially traded weaker as state-run
banks sold the U.S. currency.
However, dollar demand from local companies paying maturing
offshore debts lifted the U.S. unit to its closing level of Rp
8,985, unchanged from Wednesday's close.
Against the baht, the dollar was quoted at 43.420 baht in late
Asian trading, compared with 43.440 baht late Wednesday.
The local currency garnered some support from news that
Thailand's strong economic growth in recent quarters means that
public debt has peaked and will begin falling as a percentage of
gross domestic product.
A government official said the public debt stood at 2.98
trillion baht, or 56.4 percent of GDP, at the end of October.
The ministry had earlier expected public debt to peak in
October at 3.12 trillion baht, or 59.2 percent of GDP.