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.