DJ Asian Currencies Mostly Up Late On Yen, Stock Mkt Gains
DJ Asian Currencies Mostly Up Late On Yen, Stock Mkt Gains
Dow Jones
Singapore
Most Asian currencies basked in the glow of the yen's bounce
and Wall Street-inspired gains in the region's stock markets,
dealers said.
The yen found support from talk of Japanese investors
repatriating offshore assets before the end of the fiscal year on
March 31 and hopes that the Japanese government is about to
unveil a package of anti-deflationary measures to coincide with
U.S. President George W. Bush's visit this weekend.
At 0927 GMT (4.27 p.m. Jakarta time), the dollar was quoted at
132.68 yen, below 133.38 yen late Wednesday in New York.
"The longer dollar/yen stays in this range - 131.50 yen to 135
yen - the more scope there is for Asian currencies to
strengthen," said a dealer at a European bank.
Asian currencies have been outperforming the yen, given their
divergent economic prospects. While the region is well-positioned
to benefit from a U.S. economic recovery, Japan is sinking deeper
into an economic quagmire.
Repatriation flows could further push the yen toward the 130
yen mark, said Cohen David Cohen, an economist at Standard &
Poor's MMS International. But as these flows ebb, the Japanese
currency will likely retreat to 140-145 yen to the dollar within
the next six-to-eight months, he added.
"The Japanese economy is lagging the rest of the
industrialized countries and the rest of the region," Cohen said.
"We'll see further pressure on the yen as we go forward."
The South Korean won led the rise in the region, as foreign
investors snapped up 275.9 billion won of local shares,
propelling the benchmark stock index by 7.6 percent.
On the first trading day after the Lunar New Year holidays,
the dollar closed at 1,316.2 won, down from last Friday's close
of 1,320.2 won.
The Thai currency advanced to 11-month highs as the firmer yen
and capital inflows prompted participants in Bangkok to sell
dollars, dealers said.
Subsequently, "offshore players were caught long dollars,"
said a dealer in Singapore.
Late in the day, the dollar was at 43.630 baht, lower than
43.785 baht late Wednesday.
The Philippine peso derived its strength from its regional
peers, a 1.4 percent rise in the local stock market, as well as
dollar sales by exporters, dealers said.
On the Philippine Dealing System, the dollar closed at 51.295
pesos, lower than 51.350 pesos Wednesday.
After having been trapped in a tight band all day, the
Singapore dollar was stronger at S$1.8247 against its U.S.
counterpart compared with S$1.8330 late Monday, before the Lunar
New Year holidays.
Bucking the trend, the Indonesian rupiah was weaker as
participants rushed to cover their short-dollar positions,
dealers said.
The dollar was quoted at Rp 10,240 late in the day, higher
than Rp 10,180 late Wednesday.
Taiwan's foreign exchange market remained closed for the Lunar
New Year holidays, and will re-open Friday. The stock market
will, however, remain shut.