Market sentiment on rupiah remains negative
Market sentiment on rupiah remains negative
HONG KONG (Dow Jones): Asian currencies ended a day of
listless trading mostly a touch lower against the U.S. dollar
Tuesday.
Their softness reflected an overnight rally in the U.S.
currency against the yen and the widespread fall in regional
equity markets following Monday's drop in U.S. stock prices.
The rupiah remained sidelined, with the dollar ending Asian
trading hours at Rp 7,320, up from Rp 7,307 late Monday.
Although market sentiment toward the Indonesian currency
remains strongly negative following widespread unrest in the
country's outlying islands, dollar offers at Rp 3,350 look set to
cap the U.S. currency for the time being, said traders.
The Philippine peso, however, bucked the regional trend as
market participants sold dollars to exit long positions in the
U.S. currency after the central bank in Manila announced it is to
tighten foreign exchange reporting regulations.
By the close of trading in Manila sales had pushed the dollar
down to 40.445 pesos, from 40.490 pesos the previous day.
In other regional markets the Singapore dollar ended Asian
hours lower, weighed down by the fall of the yen and weaker local
stock prices.
Short-term sentiment toward the Singapore currency also
suffered from confirmation that Singapore Telecom is in talks
with Cable & Wireless Plc to acquire a stake in Hong Kong
telecommunications provider Cable & Wireless HKT.
Nevertheless, dealing was subdued, with few market players
willing to assume fresh risks ahead of testimony later Tuesday
from U.S. Federal Reserve chairman Alan Greenspan.
Toward the end of Asian trading the U.S. dollar was quoted
against the Singapore currency at S$1.6842, up from S$1.6822 late
Monday.
The baht also ended Asian hours a touch weaker in thin, choppy
trading. Dollar buying late in the day by a U.S. and a European
bank, thought by traders to have been executed on behalf of
institutional clients, pushed the U.S. currency up to 37.265
baht, from 37.190 baht late Monday.
In North Asian markets the Korean won ended lower after an
early stock market fall prompted dealers to cover short dollar
positions against the local currency in anticipation of a capital
outflow.
At the close, the U.S. dollar was quoted at 1,127.10 won, up
from 1,124.00 won the previous day.
The new Taiwan dollar ended flat in light trading. At the
close the U.S. dollar was at NT$30.813, compared with NT$31.812
Monday.