Asian monies mostly up late, led by Singapore dollar rise
Asian monies mostly up late, led by Singapore dollar rise
TOKYO (Dow Jones): Most Asian currencies strengthened against the U.S. dollar late Friday, driven by the Singapore dollar's rise on suspected intervention by the Monetary Authority of Singapore and by the surge in many Asian stock markets, dealers said.
The Indonesian rupiah ended lower Friday after President Abdurrahman Wahid snubbed a suggestion that he hands additional power to Vice President Megawati Soekarnoputri to resolve the current political crisis, dealers said.
The dollar closed at Rp 11,280, up from Rp 11,200 Thursday.
Wahid ruled out Friday giving further powers to Megawati as a way of ending a debilitating political standoff with Parliament.
"I have already given her everything and she is very happy with that," Wahid told reporters.
Dealers said the dollar regained its wind after the news hit the market. Earlier in the day, the dollar's rise was capped by profit taking.
"Political reconciliation seems elusive now after Wahid's comment," said a dealer with a foreign bank.
Dealers expect the dollar to trade between Rp 11,000 and Rp 11,500 next week.
The Singapore dollar pulled up most of the regional currencies in early Asian trading when the de-facto central bank apparently intervened via its agent banks to buy the local currency, dealers said.
However, the Singapore dollar's gains were later trimmed by some selling from local importers.
Still, fears of further possible MAS intervention kept the Singapore dollar well supported against its U.S. counterpart for the rest of the session, helping to underpin the majority of the Asian currencies, dealers said.
Given the more aggressive suspected MAS intervention this week, the Development Bank of Singapore said it expects U.S. dollar bulls to back off from probing the psychologically important S$1.8200 level for now.
At 0730 GMT (2:30 p.m. Jakarta time), the U.S. dollar was quoted at S$1.8145, down from S$1.8191 late Thursday.
The South Korean won clawed back lost ground against the U.S. dollar, largely on a Yonhap News Agency report that General Motors Corp. will soon submit a bid of up to $2 billion for bankrupt Daewoo Motor Co.
The positive performance of the Korea Composite Stock Price Index, or Kospi, added to the won's rise. The Kospi finished up 0.3 percent, or 1.68 points, at 583.06 on retail investors' buying and hopes of more U.S. interest rate cuts.
Late Friday, the U.S. dollar was quoted at 1,300.9 won, down from Thursday's close of 1,305.9 won.
In Manila, the Philippine peso rose against the U.S. dollar on growing hopes for a peaceful and orderly mid-term election next Monday, though some traders think a further peso rise will likely be capped by lingering caution.
Expectations that the candidates of the administration of President Gloria Macapagal Arroyo will perform well in the elections also bolstered the peso as well as the stock market.
Late in Asia, the U.S. dollar was quoted at 50.300 pesos on the Philippine Dealing System, down from 50.590 pesos Thursday.
In Taipei, the New Taiwan dollar got a lift against the U.S. dollar on rumored intervention by the nation's central bank and the rally of the Taiwanese stock market.
Against the New Taiwan dollar, the U.S. dollar was quoted at NT$32.882 in late trading, marginally down from NT$32.884 Thursday.
In Bangkok, the Thai baht eked out minor gains against the U.S. dollar, benefiting from the Singapore dollar's strength and some buying from offshore-based banks.
Late in Asian trading, the U.S. dollar was quoted at 45.465 baht, down from 45.485 baht late Thursday.