Asian monies up late as dollar surge pauses
Asian monies up late as dollar surge pauses
HONG KONG (Dow Jones): Most Asian currencies were higher
against the U.S. dollar late Friday as the U.S. unit took a pause
from its recent rise, the Philippine central bank hiked rates and
Singapore's government released stronger-than-expected growth
figures.
Only the South Korean won stood out as a session loser partly
due to the resignation of the South Korean Prime Minister Park
Tae-joon, after he admitted to improper property transactions.
Dealers also pointed out recent falls in the local stock
markets as the main reason for the won's depreciation. Local
stock markets have fallen sharply since mid-April due to bearish
U.S. markets and worries over the troubled local investment-
trusts companies.
The benchmark Korea Composite Stock Price Index has fallen
30.7 percent so far this year, while the over-the-counter Kosdaq
index has fallen 46.8 percent.
The dollar was at 1,122.5 won, up from 1,118.50 won Thursday.
Dealers reported only modest trading interest across the
board. "It was like a holiday mood," said one dealer at a U.S.
bank. Another Singapore trader said the market is waiting to see
what Taiwanese President-elect Chen Shui-bien says in his
inaugural address Saturday.
The upside for the regional currencies will be limited,
nonetheless, by the prospects for more rate hikes from the U.S.
Federal Reserve in the coming months, said traders.
The Singapore dollar was up on news that the city-state's
gross domestic product expanded 9.1 percent on year in the first
quarter, above market expectations of just over 7 percent.
The U.S. dollar was quoted at S$1.7285, down from S$1.7333
late Thursday.
A rate hike in the Philippines also boosted the peso slightly,
with the U.S. dollar trading around 41.64 pesos, down from 41.73
pesos late Thursday. With its key overnight rates hiked one half
a percentage point, the Philippine central bank was seen as
trying to prop up the local unit as the turmoil in the southern
Philippines and the U.S. rate hike continued to undermine it.
The rupiah was unmoved following the Indonesian central bank's
comments, ruling out more support for the country's beleaguered
currency.
"Only if needed, Bank Indonesia will intervene in the market;
if not (needed) we don't want to intervene," said Bank Indonesia
Governor Sjahril Sabirin.
The rupiah closed higher on Friday, at Rp 8,338 per U.S.
dollar in Jakarta trading, compared to Rp 8,350 on Wednesday.
Thursday was a public holiday.
Against the Thai baht, the U.S. dollar was also lower, with
the U.S. unit quoted at 39.135 baht, down from 39.245 baht late
Thursday. Dealers said the baht rose in line with other regional
currencies.
The U.S. dollar was only slightly lower against the Taiwanese
currency at NT$30.71, compared with NT$30.730 late Thursday.