Asian monies mostly up as Singapore dollar leads rise
Asian monies mostly up as Singapore dollar leads rise
SINGAPORE (Dow Jones): Most Asian currencies were higher late
Friday, with the Singapore dollar outshining its regional peers
as the U.S. currency lost ground against the euro, dealers said.
The euro's ability to extend its gains above $0.89, after
breaking that level in overnight trading, provided some support
to regional foreign exchange markets, especially the Singapore
dollar and the Thai baht, dealers said.
The Indonesian rupiah ended higher Friday on dollar selling by
state banks which negated any impact from the delay in the
disbursement of loans by the International Monetary Fund.
News that the IMF needs until at least next year to reach
agreement with Jakarta on economic reforms before releasing the
next $400 million under its loan program to Indonesia had little
impact on the market.
Most players had expected the IMF to delay the funds, which
were set to be released this month, due to Indonesia's slow
implementation of economic reforms under the program.
The dollar closed Asian trade at Rp 9,380 in Asia, down from
its close Thursday at Rp 9,430.
State banks sold dollars in thin pre-weekend trade, possibly
on behalf of the central bank. Bank Indonesia has said it will
defend the rupiah, but it rarely makes any announcements when it
intervenes in the foreign exchange market.
The rupiah, which is off over 30 percent since the start of
the year amid political instability and a slow economic recovery,
is set to trade in a tight Rp 9,300 to Rp 9,550 range to the
dollar next week, traders predict.
Left out in the cold, the South Korean won was dragged down by
strong onshore dollar demand and a slump on the local bourse,
dealers said.
Riding on the euro's coattails, the Singapore dollar, a
favorite pick among currency analysts, strengthened to S$1.7350
against its U.S. counterpart, compared with S$1.7392 late
Thursday. Singapore is expected to weather the global economic
slowdown next year.
Market participants were undeterred by reports of intervention
by the Monetary Authority of Singapore, for two days earlier in
the week, to curb the currency's advance.
But bids by local banks around S$1.7360 to S$1.7365, which
fueled a rebound in the U.S. dollar to as high as S$1.7394,
triggered market speculation that they were buying on behalf of
the MAS, which was probably trying to stymie the Singapore
dollar's rise, dealers said.
"Many interbank players think they could have been in down
there," a dealer said.
The baht also found support from the Thai bankruptcy court's
rejection Friday of all objections raised by Thai Petrochemical
Industry PLC's (H.TPE) management against a $3.7 billion debt
restructuring plan.
The dollar was at 43.425 baht late Friday, down from 43.495
baht late Thursday.
Seasonal remittance inflows from Filipino overseas workers
bolstered the Philippine peso, which barely reacted to the an
expected cut in the central bank's overnight rates and the
announcement of a higher budget deficit for the first 11 months
of this year.
The dollar closed at 50.030 pesos on the Philippine Dealing
System, down from 50.085 pesos Thursday.
The Taiwanese central bank's defense of the local currency
against the onslaught from the offshore non-deliverable forward
market buoyed the New Taiwan dollar, dealers said.
The U.S. dollar ended at NT$33.075, down marginally from
Thursday's close of NT$33.077.
Heavy dollar buying by local importers and banks, together
with a 2.4 percent slide on the Seoul bourse, combined to depress
the South Korean won, dealers said.
The dollar closed at 1,207 won, up from 1,202 won late
Thursday.