Asian monies mixed late, Singapore dollar strengthen to 6-week

Asian monies mixed late, Singapore dollar strengthen to 6-week high

Nirmala Menon Dow Jones Singapore

Asian currencies were mixed within tight trading ranges Wednesday with bouts of profit-taking erasing gains from the yen's strength.

Trading was mostly subdued, with limited reaction during the session to further easing of monetary policy by the Bank of Japan, traders said.

Uncertainties about the U.S. economy and its impact on export- driven countries in the region remained on the radar screen, especially after a dismal consumer confidence report that sent the U.S. dollar reeling overnight.

Traders said market players are now focused on further important economic data from the U.S. Friday, and are reluctant to take positions ahead of the U.S. Federal Open Market Committee Meeting Nov. 6.

Foreign exchange investors also don't have a big appetite for risk heading into the year-end, said Thio Chin Loo, Singapore- based senior currency analyst at BNP Paribas.

"The overall market tone is still fairly mixed. Regional currencies are still taking directly from the dollar yen," she added.

The Singapore dollar mirrored the yen's moves during the session, and was quoted around S$1.7698, down from S$1.7713 late Tuesday, but off an overnight six-week low of S$1.7660.

The firm yen failed to provide much spark for the South Korean won, which fell on dollar demand from offshore players, and also dollar buying ahead of expected equity-related flows.

The dollar ended at 1,231.8 won, up from 1,227.4 won Tuesday, after trading between 1,225.0 won and 1,237.8 won.

"Unexpected dollar flow" from an offshore fund sent the dollar climbing at the start, said Dong-Ki Jang, chief dealer of foreign exchange and derivatives at Shinhan Bank.

The Philippine peso was buoyed by strong dollar remittance inflows from Filipinos working abroad ahead of the long weekend. Philippine markets are closed for holidays on Thursday and Friday.

The dollar ended at 53.140 peso on the Philippine Dealing System, down from 53.175 peso Tuesday, after trading between 53.120 peso and 53.300 peso intraday.

The Thai baht weakened on offshore profit taking and sizable dollar demand from importers and oil companies, traders said.

The dollar finished the Asian session at 43.41 baht, up from 43.35 baht Tuesday.

Some traders said rising security concerns in Thailand, particularly after a small bomb explosion in a southern province, also prompted offshore investors to sell the baht.

Hours before that blast, five schools were set on fire and a bomb exploded at a Buddhist temple in other Muslim-dominated areas in southern Thailand - acts which officials ascribed to local disputes rather than terrorism.

In Indonesia, the rupiah's early gains were all erased by dollar demand from local corporate repaying offshore debts at the end of the month, traders said.

The dollar recovered from an intraday low of Rp 9,210 to end at Rp 9,230, slightly up from Tuesday's close of Rp 9,220.

Interbank market participants joined in the dollar buying, amid lingering security worries after the deadly bombing in Bali on Oct. 12.

"At this juncture, nobody feels comfortable maintaining short- dollar positions," said a trader at a local bank.

Elsewhere, the U.S. currency closed at NT$34.810 against the New Taiwan dollar, a tad below Tuesday's NT$34.815. Intraday, the pair moved between NT$34.785 and NT$34.849.

The yen's volatility did little to stimulate trading in the Taiwan currency, while the market seemed to have shrugged off falling local stock prices, traders said. Taiwan's key stock index fell 1.2 percent Wednesday.