Most Asian currencies flat as rampant won extends rise
Most Asian currencies flat as rampant won extends rise
SINGAPORE (Dow Jones): Asian currencies again took a back seat to a rampant won in Asian trading Wednesday.
The won extended its recent rises, jumping as much as 0.8 percent to its highest level since late June on more repatriation of funds from a capital raising in the U.S., and on foreign purchases of South Korean stocks due to the nation's strong economic outlook.
However, the rest of the Asian currencies were barely changed late Wednesday from a day earlier.
Although local South Korean stocks fell 0.5 percent, net purchases of stocks by foreigners reached an estimated 62.1 billion won on the day.
Traders said both the repatriation of funds raised by a $180 million initial public offer of shares in Korea Thrunet (KOREA) for its listing earlier this month on Nasdaq, and expectations that Moody's Investors Service may further upgrade South Korea's sovereign ratings soon, continued to help the won.
The rapid rise of the won, its acceleration in each of the past three trading sessions, and climbing bond yields are all causing official concern, and prompted intervention Wednesday in the foreign exchange and bond markets.
State-run Korea Development Bank bought the U.S. currency in its routine daily dollar-supportive action. The action helped the dollar to bounce from an intraday low of 1,159.90 won, but sentiment toward the won remains bullish.
By the end of domestic trading Wednesday in South Korea, the U.S. dollar had fallen to 1,163.00 won from 1,169.50 won at Tuesday's close.
Elsewhere, the New Taiwan dollar was unmoved despite a 1.5 percent fall in the Taiwan Index of share prices on news the Morgan Stanley Capital International will wait until May 2001 to give Taiwan a 100 percent weighting in two key MSCI market indexes.
At the end of domestic dealing in Taipei, the U.S. currency was quoted at NT$31.728 from NT$31.727 late Tuesday.
In late Asian trading, the U.S. currency was at 38.6600 Thai baht, up slightly from 38.6350 baht in late the previous session.
Traders said the minor weakness of the baht was unrelated to the long-expected filing of a censure motion against the government by the parliamentary opposition, and was rather due to a small outflow of capital.
Debate of the censure motion likely won't take place until mid-December, and the government is expected to survive.
Meanwhile, the U.S. dollar is at Rp 7,100 late Wednesday, up slightly from Rp 7,075 late Tuesday.
Against the Singapore dollar, the U.S. unit was trading at S$1.6680, down from S$1.6697 previously.
And versus the Philippine peso, the U.S. currency ended at 40.640 pesos, unchanged from Tuesday's close.