Asian monies mixed late, yen lends support
Asian monies mixed late, yen lends support
SINGAPORE (Dow Jones): A firmer yen helped the Singapore dollar and Thai baht recover some of their recent losses Thursday, while continuing political uncertainty pushed the Indonesian rupiah to a 30-month low.
The beleaguered North Asian currencies were given a breather thanks to market-closing holidays. The Philippine peso finished a touch lower.
The yen benefited from Japanese life insurance companies and foreign fund managers unwinding their long dollar positions after the recent sharp rise in the U.S. currency. The dollar fell below Y124 late Thursday after rising as high as Y126.80 in recent sessions.
The Indonesian rupiah closed lower Thursday on political concerns, as local companies continued to accumulate dollars.
The dollar closed locally at Rp 10,740, off an earlier high of Rp 10,765, but up from Rp 10,460 at Wednesday's close.
Bank Indonesia was heard selling around $50 million through state banks to help the beleaguered currency, but dealers said the outlook for the dollar remained bullish as political turmoil showed no signs of abating.
President Abdurrahman Wahid is trying to stave off an impeachment threat by striking a compromise with his opponents. Anticipating a long standoff and possible unrest, corporate customers are trying to cover their upcoming dollar needs.
"This is just the beginning," said a foreign bank trader, referring to Thursday's dollar rise.
The Singapore dollar, which had fallen nearly 5 percent so far this year, responded by posting its best performance against the U.S. dollar this week.
The uptick in the Singapore currency pushed the U.S. dollar below a key support level of S$1.8080 in late in the Asian session, a dealer at an Asian bank said. Near the end of Asian trading the U.S. dollar was quoted at S$1.8075, down from S$1.8141 late Wednesday.
The dealer said the Singapore dollar's momentum was expected to continue into European trading hours, with the U.S. dollar expected to test its next support level at S$1.8040.
The Thai baht, which hit a fresh 37-month low a day earlier, got a reprieve from the rising yen.
Late in Asian trading the dollar was quoted at 45.260 baht, down from 45.475 baht late Wednesday.
Thai Finance Minister Somkid Jatusripitak reiterated Thursday that he wasn't concerned about the baht's weakness because it was the result of regional factors.
"The baht weakness isn't a domestic issue," he told reporters after a meeting with a visiting team from Moody's Investors Service.
Somkid declined to comment on the central bank's confirmation that it had intervened in the foreign exchange market to slow the baht's weakening.
Bank of Thailand Governor Chatu Mongol Sonakul earlier confirmed that the central bank sold a small amount of dollars in the offshore market to limit volatility in the baht.
The Philippine peso closed off its intraday low as profit- taking halted the dollar's sharp rise.
The dollar closed at 50.175 pesos on the Philippine Dealing System, up from 50.160 pesos Wednesday. The U.S. currency had hit an intraday high of 50.290 pesos.