Money players await G-7 meeting, Asian currencies mixed late
Money players await G-7 meeting, Asian currencies mixed late
Ron Harui, Dow Jones, Tokyo
Asian currencies were mixed against the U.S. dollar in Asia Friday, as players put finishing touches on positions ahead of key U.S. economic data later today and a weekend meeting of finance officials of the Group of Seven industrial nations.
Grabbing the spotlight in Asia, however, was the fall in the Philippine stock market to a new three-year low due to ongoing uncertainty over the economic effects from possible U.S. military action against terrorists, dealers said.
With the local stock market's plunge, the Philippine peso was dragged lower against the U.S. dollar, despite better-than- expected inflation data and credit rating agency Fitch's decision to keep its stable outlook for the Philippines.
Inflation in the Philippines rose 6.1 percent on year in September, compared with economists' consensus estimate of 6.3 percent. Fitch maintained its stable outlook for the Philippines due to the nation's flexible exchange-rate system, modest external financing needs and diminished political risks.
Fitch currently has a BB+ foreign currency and BBB- local currency rating for the country's sovereign debt.
The 30-company Philippine Stock Exchange index fell to a new three-year low Friday, closing down 6.49 points, or 0.6 percent, at 1088.44. The peso weakened to 51.565 pesos per U.S. dollar late Friday, from 51.540 pesos late Thursday.
But, the much-awaited U.S. employment data due out at 1230 GMT (7:30 p.m. Jakarta time) and the meeting of G7 finance ministers and central bankers this weekend kept many participants waiting on the sidelines.
In Taipei, the New Taiwan dollar eked out gains against its U.S. counterpart on a surge in the local stock market, which was fueled by buying from government funds and foreign investors.
The U.S. dollar closed at NT$34.559 late Friday, down from Thursday's close of NT$34.568.
In Seoul, the Korean won ended marginally higher against the U.S. dollar as the yen traded a tight range, and investors were reluctant to take positions ahead of the weekend.
The U.S. dollar finished at 1,312.2 won, down slightly from Thursday's close of 1,313.1 won.
In Thailand, the baht was slightly hurt by a slide in local stocks, spurred by profit-taking. Worries about possible U.S. retaliation against terrorists increased among investors following reports about a Russian plane crashing in the Black Sea, with the cause of the incident remaining unclear.
Around 0900 GMT (4 p.m. Jakarta time), the Stock Exchange of Thailand Index, or SET, was down 1.41 points, or 0.5 percent, at 281.60. The Thai currency was trading at 44.705 baht per U.S. dollar late Friday, weaker from 44.615 baht late Thursday.
In Jakarta, expectations of future interest-rate cuts by Bank Indonesia cast a shadow over the Indonesian rupiah.
Indonesia's central bank said Friday it hopes to lower its benchmark interest rate by the end of the year from its current level of above 17 percent.
While the U.S. dollar failed to rise above that level late Friday, it was last trading at Rp 9,830, up from Rp 9,740 late Thursday.
The Singapore dollar was trading at S$1.7829 against the U.S. dollar late Friday, weaker from S$1.7793 late Thursday.