Most Asian currencies reach fresh highs
Most Asian currencies reach fresh highs
Netty Ismail, Singapore, Dow Jones
Most Asian currencies hit fresh multi-month highs late Monday as the U.S. dollar remained on the defensive - particularly against the yen - in international foreign exchange markets.
However, the selloff in regional equity markets - weighed by losses on Wall Street - and fears of central bank intervention kept a rein on the strength of Asian currencies, preventing them from breaking key resistance levels, observers said.
"The yen would appreciate and outperform Asian currencies because the central banks want to maintain some measure of competitiveness," said Mansoor Mohi-uddin, a regional currency strategist at UBS Warburg.
At 0900 GMT (5:00 a.m. EDT), the dollar had reclaimed some ground and was quoted at 127.83 yen, compared with 127.80 yen in New York, and 128.79 yen in Tokyo late Friday.
The yen's gains helped push the Singapore dollar to six-and-a- half month high, the South Korean won to a four-month peak, the New Taiwan dollar to a fresh four-month high and the Philippine peso to seven-month high. The Thai baht rode on the coattails of its regional cousins.
Against the Singapore dollar, the U.S. currency opened at S$1.8020, its weakest level since Oct. 10 last year, after having been sold off in New York trade Friday.
U.S. dollar purchases by Singapore and U.S. banks helped the currency regain its footing, dealers said.
The U.S. currency's rebound also led some in the market to surmise that the Monetary Authority of Singapore could have intervened to curb the local currency's strength, although some observers dismissed such speculation, dealers said.
Late in the day, the Singapore dollar was stronger at S$1.8067, compared with S$1.8097 against its U.S. counterpart late Friday.
Month-end dollar sales by exporters provided an additional fillip for the South Korean won, dealers said.
The won finished at 1,293.6 won against the dollar, stronger than Friday's close of 1,297.6 won. The won hit an intraday high of 1,289.0 won.
Short-covering in U.S. dollar positions emerged late in the day after the local currency failed to sustain its break below 1,290 won, dealers said.
Net sales of some 208.6 billion won worth of South Korean shares by foreign investors somewhat restrained the won's rise, although it failed to reverse its trend.
Helped in part by exporters' dollar-sales, the New Taiwan dollar finished at NT$34.730 against the U.S. currency, stronger compared with NT$34.769 Friday.
Intermittent U.S.-dollar purchases by Taiwan's central bank and foreigner equity sales of a net NT$5.22 billion worth of shares on the Taiwan Stock Exchange Monday helped put a lid on the local currency's gains, dealers said.
On the Philippine Dealing System, the peso closed at 50.630 pesos to the dollar, compared with 50.823 pesos Friday.
"The dollar managed to break below its long-standing support at 50.80 pesos this morning on expectations of more inflows from overseas remittances, as well as positive sentiment following reports of U.S. pension fund Calpers is likely to review its decision to pull out of the Manila stock market," Bank of America said in a report.
The Thai currency was firmer at 43.205 baht to the dollar, compared with 43.260 baht late Friday.
Left out in the cold, the Indonesian rupiah retreated after having priced in news that the International Monetary Fund had agreed Friday to unlock an additional $347 million in loans to the country.
The fund said the Indonesian government has broadly fulfilled the conditions of a $4.6 billion IMF loan aimed at rebuilding the economy.
The Indonesian currency was quoted at Rp 9,325 to the dollar, compared with Rp 9,300 late Friday.