Most Asian currencies mixed late
Most Asian currencies mixed late
SINGAPORE (Dow Jones): A slightly firmer yen lent support to most Asian currencies Tuesday, but trading was subdued ahead of the publication of key U.S. economic data and testimony by U.S. Federal Reserve Chairman Alan Greenspan later in the week.
The South Korean won, New Taiwan dollar, Thai baht and Singapore dollar scratched out modest gains against the U.S. dollar, while the Indonesian rupiah and Philippine peso slipped.
Currency traders were cautious about taking large positions in advance of the economic data, including a report due out later Tuesday on U.S. consumer confidence. It's an indicator Greenspan has said is a key determinant of whether the U.S. economy is headed toward a recession.
The market also will be closely watching Tuesday's issue of data on January durable goods, and the National Association of Purchasing Management's monthly survey of business conditions to be posted Thursday, dealers said.
The rupiah plunged to Rp 9,905 per dollar, its low since late October 1998, shortly after trading started. It finally closed at Rp 9,855 per dollar, only a touch higher from Rp 9,860 Monday.
State banks, which were believed to have acted on behalf of Bank Indonesia actively sold the dollar to prevent rupiah's further slide.
State banks were the only dollar sellers Tuesday as everyone was betting on the rupiah weakening further amid healthy demand for the U.S. unit from local corporations to pay offshore debts, dealers said.
Dealers said state banks sold in excess of $30 million Tuesday, much higher than the usual $10 million to $20 million, to prevent the dollar from rising to Rp 10,000, a major psychological resistance level.
The Thai baht remained well supported by the stable political environment that emerged following Thaksin Shinawatra's election as prime minister in a landslide victory Jan. 6.
The dollar was quoted at 42.830 baht in late Asian trading, down from 42.920 baht late Monday
Among factors helping the baht was the weekend agreement between government and commercial banks to set up a state asset management corporation to handle nonperforming loans in the financial system. More meetings are expected this week to discuss purchase price standards for the country's non-performing loans.
The Singapore dollar edged higher as market players trimmed their long U.S. dollar positions in the wake of the strengthening yen and Thai baht, dealers said.
Late in Asian trading the U.S. dollar was quoted at S$1.7427, down from S$1.7438 late Monday in Asia.
The Philippine peso was pressured by light month-end corporate demand for U.S. currency, dealers said.
The dollar closed at 48.265 pesos on the Philippine Dealing System, up from 48.230 pesos Monday.
The South Korean won was helped by month-end dollar selling by exporters, dealers said.
The dollar finished at 1,246.5 won, lower than 1,248 won Monday. There was little in the way of news or economic data to influence trading.
The New Taiwan dollar finished marginally higher as early strength from exporters selling U.S. dollars for month-end requirements gave way to afternoon short covering following losses in the local stock market.
The U.S. dollar closed at NT$32.343, compared with NT$32.345 Monday.