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.