Asian monies mixed on Iraq, economy fears
Asian monies mixed on Iraq, economy fears
Dow Jones, Singapore
Asian currencies were locked in tight ranges in largely
directionless trade Wednesday amid a dearth of fresh factors,
though concerns about Iraq loomed large in the minds of market
players, dealers said.
The South Korean won, Philippine peso and Indonesian rupiah
eked out small gains versus the U.S. dollar, while the New Taiwan
dollar and Thai baht weakened slightly.
The Singapore dollar was quite steady in subdued trading as
market players kept to the sidelines amid concerns about the
domestic economy that led to speculation the Monetary Authority
of Singapore may soon loosen its currently neutral monetary
policy bias.
The U.S. dollar was quoted around S$1.7645, up from S$1.7637
late Tuesday.
Peter Redward, regional forex strategist at Deutsche Bank,
said market players are looking for direction from Wall Street as
they try to weigh between the prospects of a slowdown in regional
economies - "people would be quite shocked at the magnitude and
speed of the slowdown" - and a weakening dollar.
Markets are now waiting for Federal Reserve Chairman Alan
Greenspan's comments on the economy when he testifies before the
Joint Economic Committee of Congress later Wednesday, though most
people aren't expecting any major surprises.
Also, several important sets of U.S. economic data over the
next couple of days are expected to provide further insights into
the health of the economy.
In South Korea, the dollar ended at 1,202.2 won, down from
1,206.0 won Tuesday.
In Taiwan, the U.S. currency was lifted as market players
onshore and offshore covered short positions against the New
Taiwan dollar.
The U.S. unit closed at NT$34.619, up from Tuesday's
NT$34.565.
Meanwhile, dollar buying by local oil companies helped boost
the currency against the Thai baht, though it remained in a tight
band between 43.14 baht and 43.21 baht during the Asian session.
Late in Asia, the dollar was quoted around 43.29 baht, up from
43.12 baht late Tuesday.
Elsewhere, the dollar ended at 53.220 peso on the Philippine
Dealing System, down from 53.270 peso Tuesday as banks took
profits on the currency's recent gains.
In Indonesia, the dollar also ended lower on selling by state-
owned banks, likely on behalf of the central bank, dealers said.
The dollar closed at Rp 9,055, down from Rp 9,085 previously.