Asian monies mostly up late on yen, won at 3-week high
Asian monies mostly up late on yen, won at 3-week high
Nirmala Menon, Dow Jones, Singapore
A stronger yen lifted the South Korean won to its strongest close in three weeks and helped the Philippine peso bounce back from early losses.
The dollar closed at 1,231.9 won, down from 1,243.5 won Tuesday after trading between 1,231.5 won and 1,242.7 won.
This was the won's best finish since Oct. 2. Traders said the brunt of dollar sales emerged in the afternoon session, as the U.S. currency edged down toward 124 yen.
Dollar sales linked to foreign buying of Korean stocks in recent days also helped drive up the won, traders said.
Frank Gong, a Bank of America currency strategist in Hong Kong, said there is more upside for the won if the broadly bullish trend on Wall Street continues.
"We still have the U.S. market holding up, so if that's the case, this will ease some concerns about a double dip in the U.S., and that's positive for Korea's economic outlook," Gong said. "That's a reason for people to bullish on the won."
The Philippine peso initially extended its losses from the previous day on the government's yawning budget deficit and lingering security concerns, but later recovered as the yen set the trend for the region.
The dollar closed at its intraday low of 53.030 peso on the Philippine Dealing System, down from 53.240 peso Tuesday.
Earlier, the government said the budget deficit for the nine months to September had ballooned further to 166.4 billion peso.
The stronger yen and a rally on the local stock market paved the way for the New Taiwan dollar to close at its strongest level in slightly over a month.
The U.S. dollar ended at NT$34.790, down from NT$34.926 Tuesday, and its lowest since Sept. 20. Intraday, it traded between NT$34.690 and NT$34.968.
Trading volume surged to US$621 million from $298 million in the previous session.
Traders said the local dollar initially tracked the yen higher. Later, as local shares powered higher, the inflow of funds boosted sentiment for the local currency. Taiwan's key stock index jumped 4.6 percent.
Traders said the central bank likely entered the market at the local unit's intraday high, but overall, it wasn't very active.
The Singapore dollar rebounded from early lows as the yen's gains sparked unwinding of U.S. currency positions across the region.
But thin trading volumes amid a lack of local leads exaggerated the currency's moves, traders said.
Late in Asia, the dollar was quoted around S$1.7797 compared with S$1.7855 late Tuesday. Intraday, it traded between S$1.7795 and S$1.7900.
The rupiah bucked the regional trend and weakened on importer demand for dollars, though profit-taking on the U.S. currency helped trim losses.
In Indonesia the dollar was quoted around Rp 9,217 compared with Rp 9,190 at the previous session.
Traders said sentiment for the local currency remains bearish due to continued fears over security in the country.
Indonesia has made some efforts to crack down on terrorism since the deadly bombing in Bali two weekends ago, but has so far made little progress in investigations to find those responsible for the attacks.
Thailand's financial markets were closed for a holiday Tuesday. But in offshore trading, the baht recouped early losses as the yen firmed in Asia.
The dollar peaked at 43.730 baht and then fell back to trade around 43.570 baht late in the session, down from 43.650 baht late Tuesday.