Asian monies strengthen, including peso and rupiah
Asian monies strengthen, including peso and rupiah
Alan Yonan Jr., Dow Jones, Singapore
Asian currencies strengthened Monday, including the peso, which
shrugged off investor concerns over a spate of bombings in the
Philippines to post a late-session rally.
The peso had fallen to a fresh 14-month low early in the day
on the heels of a bomb blast Sunday at an open-air Christian
shrine in the southern city of Zamboanga. It was the country's
third bomb blast in four days.
The dollar changed hands as high as 53.470 pesos in morning
trading before the tide turned as traders sold the U.S. currency
to take profit.
However, analysts said prospects for the peso remain dim,
given the serious security concerns investors have about the
Philippines.
"You can expect more of either actual bomb explosions or bomb
scares in the coming days. Therefore you can expect pressure on
the equities market and also on the currency to continue," said
BNP Paribas Peregrine Securities' research chief Edgar Bancod.
One person was killed and 16 others were wounded in Sunday's
explosion in Zamboanga, the same city where seven people were
killed and 160 wounded in a blast last Thursday in a crowded
bazaar.
Two bomb blasts rocked Manila Friday, including one on a bus
in the Philippine capital that killed two people and injured more
than 20.
The dollar closed at 53.205 pesos on the Philippine dealing
system, down from 53.290 pesos late Friday.
Philippine Central Bank Governor Buenaventura denied market
rumors that the central bank had intervened in foreign exchange
markets to support the peso.
Buenaventura also said he didn't expect the bombings to have a
long-term impact on the peso.
"I think the present (market) nervousness is understandable
given the current situation. But this should be temporary."
Other Asian currencies drew some support from the yen, which
strengthened after Moody's Investors Service upgraded the
country's foreign currency debt rating in a largely technical
move.
Moody's said its upgrade of Japan to the top category of Aaa
from Aa1 was due to refinements in its ratings methodology rather
than credit improvements in the outlook for Japan.
Nonetheless, traders used the announcement as an excuse to
sell the dollar, which had been looking somewhat overbought and
top heavy.
Late in Asian trading the dollar was quoted at 124.56 yen,
down from 125.52 yen late Friday in New York.
Against the New Taiwan dollar, the U.S. currency closed at
NT$34.895, down from NT$34.928 Friday.
The Singapore dollar tracked the yen higher.
Near the end of Asian trading the U.S. currency was quoted at
S$1.7803, down from S$1.7888 late Friday.
The U.S. dollar's fall against its Singapore counterpart was
somewhat exaggerated because trading in the Singapore market was
light and liquidity thin, Bank of America said in a research
note.
Against the Indonesian rupiah, the dollar was quoted at Rp
9,200 in late Asian trading compared with Rp 9,215 late Friday.
Dealers said although the rupiah gained slightly, it remains
under pressure due to the nation's economic outlook, which
deteriorated following the Oct. 12 bombing of a nightclub in
Bali.
Tourism, which accounts for 5 percent of the country's annual
output, is expected to take a huge hit from the blast, which
apparently targeted foreign tourists. Foreign direct investment
is also expected to slump.
Against the Thai baht, the dollar was quoted at 43.625 baht,
down from 43.775 baht late Friday.