DJ Asian Currencies Mixed Late; Strong Econ Data Helps Baht
DJ Asian Currencies Mixed Late; Strong Econ Data Helps Baht
Dow Jones Singapore
Better-than-expected second-quarter economic growth in Thailand boosted investor sentiment toward the baht on Monday, while other Asian currencies were mixed.
The Thai government reported that the country's economy expanded by 5.8 percent in the April-June period, led by rising private investment and strong exports.
The impressive growth numbers confirm that Thailand's economy is outperforming the rest of Asia, excluding China.
The strong second-quarter growth figures prompted the government to revise its full-year gross domestic product forecast up to 5.8-6.2 percent from 4.5-5.5 percent previously.
The baht rallied for most of the day. Toward the end of Asian trading the dollar was quoted at 40.665 baht, down from 40.775 baht late on Friday.
Some private forecasters are looking for even stronger growth this year.
"The robust second-quarter outcome, together with more signs of a sturdy global economic rebound in the second half, prompts us to lift the 2003 GDP growth forecast to 6.3 percent," JP Morgan said in a research report. The investment bank said it expected that pace of growth to continue in 2004.
The South Korean won weakened as financial markets reopened after a long holiday.
The dollar closed at 1,172.7 won compared with its last close at 1,170 won Sept. 9. Local financial markets had been shut since last Wednesday for the Chuseok thanksgiving holiday.
A downturn in the local stock market weighed on the won as foreign investors turned net sellers of local stocks for the first time in 17 sessions.
Some traders said they suspect the dollar got an additional boost against the won after the government intervened in currency markets to buy the U.S. unit.
The Taiwan government's continuing effort to cap the local currency's strength underpinned the U.S. dollar.
The U.S. dollar ended at NT$34.147, up from Friday's close of NT$34.100.
"There was still a lot of strong (U.S. dollar) sell orders by exporters, but the central bank was buying up everything," said one dealer at a foreign bank.
The Taiwan government regularly enters the market to buy U.S. dollars because it fears a stronger local currency will make its exports less competitive in global markets.
The peso strengthened as the usual corporate demand for U.S. dollars dropped off.
The dollar closed at 54.965 peso on the Philippine Dealing System, down from 54.990 peso on Friday.
"Unlike last week, we didn't see today a rush of buyers when the U.S. dollar dipped below 55 peso," said a trader with a local bank.
The Singapore dollar weakened slightly in light trading.
Late in Asia the U.S. dollar was quoted at S$1.7524, up from S$1.7512 late on Friday in Asia.
The Singapore dollar often tracks movements in the yen, but with financial markets in Tokyo closed for a holiday yen trading was fairly inactive during the Asian session.
Trade in the Singapore dollar was very thin, with activity dominated by just a few, mostly local banks.
The Indonesian rupiah edged lower as investors sold the currency after taking profit in the local stock market.
Near the end of Asian trading the dollar was quoted at Rp 8,460, up from Rp 8,450 late on Friday.
The main index of the Jakarta stock exchange fell 0.6 percent to 574.799 points, as investors took profit on recent strength. Indonesian shares have risen about 9% so far in September, helping the rupiah strengthen.