Most Asian monies down late, Singapore dollar a laggard
Most Asian monies down late, Singapore dollar a laggard
SINGAPORE (Dow Jones): After finding support from a firmer
Japanese yen earlier in the day, most Asian currencies lost
ground late Friday, as market participants braced for more
disappointing economic data from the U.S., dealers said.
Resisting the downward momentum, the New Taiwan dollar and the
Indonesian rupiah were slightly stronger.
The Indonesian currency was slightly stronger at Rp 10,950 per
dollar, compared with Rp 11,090 late Thursday, as participants
liquidated their long dollar positions ahead of the weekend,
dealers said.
U.S. non-farm payrolls and unemployment data are scheduled to
be released at 1230 GMT (7.30 p.m. Jakarta time).
"The market is afraid of more bad figures," said a senior
dealer at a European bank.
"Yesterday's (Thursday) weak numbers, especially the initial
jobless claims, have heightened expectations that tonight's
employment data are going to be weak," said a U.S. bank dealer.
U.S. weekly initial jobless claims rose by 9,000, compared
with analysts' expectations of a decline of 8,000.
Some market observers are also skeptical if the recent
strength of the yen - which skirted around the Y121 level against
the dollar most of the day - will be sustained.
Some dealers expect a relapse in the yen next week as Japanese
investors, hungry for dollars, return from their Golden Week
holidays, and as the euphoria over the election of reformist
Prime Minister Junichiro Koizumi fizzles off.
The slight strength in the yen failed to rub off onto the
Singapore dollar, which remained a laggard in the region.
Comments by the Monetary Authority of Singapore that the
domestic inflation rate isn't likely to rise in the near term,
despite the weaker local currency, dealt a fresh blow to the
Singapore dollar. The Singapore dollar has been reeling on strong
demand for the U.S. currency by local firms seeking to fund their
overseas acquisitions.
At 0905 GMT (4.05 p.m. Jakarta time), the U.S. dollar was
quoted at S$1.8213, higher than S$1.8201 late Thursday. The U.S.
dollar had earlier in the day revisited its 11-year high of
S$1.8245.
On the Philippine Dealing System, the dollar closed at 50.38
pesos, up from 50.28 pesos Thursday.
Philippine Central Bank Governor Rafael Buenaventura said
Friday the planned lifting next week of the "state of rebellion"
- imposed Tuesday to quell the mayhem on Manila streets by
supporters of arrested leader Joseph Estrada - will ease the
pressure on the peso.
But analysts said the peso could come under renewed assault if
political tensions flare up again ahead of congressional and
local elections May 14.
Buenaventura said that favorable inflation data for April -
which rose 6.7 percent on year - should enable the central bank
to ease monetary policy further, although overnight rates will
likely be kept on hold until after the May 15 meeting of the
Federal Reserve's policy-setting arm.
The Thai currency was at 45.565 baht per dollar, compared with
45.450 baht late Thursday.
In Seoul, the dollar finished at 1,298.2 won, up from
Thursday's close of 1,294.5 won. After earlier tracking the yen's
gains, the won retreated as corporate demand for dollars emerged,
dealers said.
Buoyed by the yen's gains, the New Taiwan dollar closed
marginally stronger at NT$32.884 against its U.S. counterpart,
from NT$32.890 Thursday.