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.