Most Asian currencies close higher against U.S. dollar
Most Asian currencies close higher against U.S. dollar
SINGAPORE (Dow Jones): Asian currencies finished local trading hours a touch stronger against the U.S. dollar Friday, with the slumping South Korean won getting help from a state-run bank.
Market players trimmed their long dollar positions ahead of the weekend after deciding a recent run-up had perhaps pushed the U.S. currency a bit too far, dealers said.
The Indonesian rupiah closed slightly higher Friday after a central bank intervention, but dollar demand remains healthy, dealers said.
The dollar nudged to Rp 9,565 in intraday trade, just short of its year-high of Rp 9,580, but Bank Indonesia's intervention pushed it lower.
The dollar closed at Rp 9,520, down from Rp 9,535 late Thursday in Asia.
Dealers said dollar-demand is still strong as corporates seek the U.S. currency to service yearend debts.
New figures showing Indonesia's November consumer price index was higher than expected, up 9.12 percent on-year and 1.32 percent on-month due to higher food prices, didn't impact the currency.
The rupiah was also unmoved by data showing imports rising 68.3 percent on-year in October, causing the trade surplus to decrease to $2.03 billion.
The dollar opened stronger at 1,216.0 won and quickly shot up to 1,220.50 won, a 14-month high. The state-run Korea Development Bank quickly jumped into the market and within minutes dollar was beaten back to 1,200 won.
The two currencies then spent the rest of the day trading within a range of around 1,206 won to 1,215 won, sandwiched between dollar-selling by the KDB and local exporters and dollar- buying at the bottom end by local importers and banks covering short-dollar positions.
At the close the dollar was quoted at 1,209.50 won, down from 1,214.3 won late Thursday.
The Singapore dollar was pushed higher by onshore corporate buying interest in fairly lackluster market conditions, a dealer at a European bank said.
The U.S. dollar fell through a key S$1.7500 support level on its way to an intraday low of S$1.7493 in afternoon trading.
The U.S. dollar rebounded slightly near the end of Asian trading when London markets opened and demand for the U.S. currency picked up, the dealer said.
"When London came in buying dollars it bounced off the $1.7500 level," he said.
Late in Asian trading the dollar was quoted at S$1.7521, down from S$1.7573 late Wednesday.
The stronger Singapore dollar also lent support to the Thai baht, the European bank dealer said.
"There was offshore interest to liquidate long dollar positions," he said. However, volume was light in offshore trade due to restrictions the Thai government has imposed to discourage speculative trading of the baht.
Near the end of Asian trading the dollar was quoted at 43.790 baht, down from 43.855 baht late Thursday.
The Philippine peso was buoyed by continued remittance inflows from overseas Filipino workers and waning corporate dollar demand, traders said.
The dollar closed at 49.560 pesos on the Philippine Dealing System, down from 49.630 pesos Wednesday.
The New Taiwan dollar finished higher for the first time in a week, helped by a late rally in local stocks. The U.S. dollar closed at NT$33.036, down from NT$33.046 Thursday, a 20-month low.