Little change in most Asian monies
Little change in most Asian monies
Dow Jones, Singapore
The Singapore dollar and Thai baht found some support from a stronger yen, but most other Asian currencies were little changed against the U.S. dollar Wednesday.
Trading was generally subdued, dealers said, with currencies remaining well within their recent ranges.
The yen continued its seesaw trading pattern with the U.S. dollar, finishing Asian trading hours slightly higher, but failing to establish a clear directional trend.
Near the end of Asian trading the U.S. dollar was quoted at 132.69 yen, below 133.35 yen in New York and 133.42 yen in Tokyo late Tuesday.
The U.S. dollar hasn't broken above 134 yen or below 132 yen in the past two weeks.
The currency pair has been pulled in opposite directions. Higher oil prices and the stronger U.S. economy are underpinning the U.S. dollar while the yen has managed to stay relatively buoyant with the help of Japan's rebounding stock market.
However, many analysts say it is just a matter of time before the yen falls victim to a host of negative factors, including Japan's weak economic performance and dimming prospects for Prime Minister Junichiro Koizumi's ambitious reform agenda.
Koizumi's declining popularity and divisions among coalition partners in the ruling Liberal Democratic Party could eventually result in the prime minister's ouster, Bank of America noted in a research report.
"If Koizumi goes, then foreign investors are likely to start selling Japanese stocks on the idea there will never be reform and the budget deficit will blow up in the near future," according to the report.
A falling stock market would rekindle fears about the stability of the banking system, both of which would weigh on the yen over the longer term.
The Singapore dollar eked out a modest gain on the heels of the stronger yen.
Late in Asian trading the U.S. dollar was quoted at S$1.8438, down from S$1.8469 late Tuesday.
"There has been little direct interest in Sing (Singapore dollar), but mainly it has been cross trading involving yen," a U.S. bank dealer in Singapore said.
The baht slipped to a five-week low early in the session before recovering to finish a touch higher against the U.S. dollar.
Near the end of Asian trading the U.S. dollar was quoted at 43.705 baht, down from 43.730 bath a day earlier.
The U.S. dollar had climbed to an intraday high of 43.815 bath with the support of offshore players and oil importers.
Taiwan's central bank intervened in the local currency market to keep the New Taiwan dollar in a tight range against its U.S. counterpart.
The U.S. dollar closed at NT$35.002, compared with NT$35.005 on Tuesday.
As the New Taiwan dollar strengthened in tandem with the yen, the central bank was buying U.S. dollars to keep a lid on the local currency. The central bank bought an estimated US$70 million throughout the session.
The central bank manages the level of New Taiwan dollar through the currency markets to prevent excessive volatility.
The Philippine peso closed marginally lower after recouping most of its early losses.
Traders said the U.S. dollar's advance was capped by the yen- led rise in regional currencies and a thinning of corporate demand toward the close of session.
The dollar closed at 51.150 pesos on the Philippine Dealing System, up from 51.140 pesos Tuesday.
The Indonesian rupiah was unchanged as U.S. currency purchases from local companies for debt repayment offset U.S. dollar selling by banks.
The U.S. dollar closed at Rp 9,800 after trading between Rp 9,750 and Rp 9,820.