Most Asian monies firmer late on yen, U.S. economic hopes
Most Asian monies firmer late on yen, U.S. economic hopes
SINGAPORE (Dow Jones): Most Asian currencies were firmer late Wednesday, finding solace from the yen's gains and cautious optimism that the U.S. economy may have hit a bottom, market watchers said.
Gains on most of the region's bourses also supported these currencies.
Left out in the cold, the rupiah remained pressured by Indonesia's political quagmire.
The dollar closed at Rp 11,160, up from Rp 11,050 Tuesday after trading between Rp 10,950 and Rp 11,350.
The dollar's dip below Rp 11,000 triggered dollar bids by local companies, which propped the unit up, dealers said.
"Demand for the dollar from corporate customers will be plenty if there is no real improvement in domestic politics," said a dealer with a foreign bank.
Jakarta and most parts of Indonesia remained calm Wednesday after the parliament issued a second censure to President Abdurrahman Wahid Monday over his roles on two financial scandals. The censure is a further step toward his impeachment, possibly in August.
President Wahid has stated that he won't step down despite mounting pressure from parliament. His defiance keeps the political conflict alive.
Hopes that Japan's new prime minister, Junichiro Koizumi, will implement long-awaited economic reforms bolstered the yen, which in turn inspired gains in the other Asian currencies, especially the South Korean won.
The South Korean currency closed 1.3 percent stronger at 1,302.8 won against the U.S. dollar, compared with 1,319.7 percent Monday.
At 0835 GMT (3:35 p.m Jakarta time), the U.S. dollar was quoted at Y121.93, below Y122.02 in New York late Tuesday. The dollar was trading around Y123.18 in Tokyo late Tuesday.
Signs of a stabilizing U.S. economy also buoyed sentiment in Asia, analysts said. Activity in the U.S. manufacturing sector inched up in April and construction remained strong in March, buoying overall economic growth.
The National Association of Purchasing Management's new-orders index rose for the third consecutive month while businesses continued to work off the inventory glut that has acted as a drag on growth.
The Philippine peso rebounded 1.4 percent against the U.S. dollar Wednesday as local financial markets cheered President Gloria Macapagal Arroyo's decisiveness in crushing efforts to unseat her, dealers said. The benchmark Philippine stock market index soared 4.1 percent Wednesday.
The Philippine government promptly restored law and order to the streets of Manila, following violent clashes between security forces and supporters of deposed leader Joseph Estrada Tuesday.
The Philippine currency closed at its intraday high of 50.730 pesos against the U.S. dollar, from 51.45 pesos Wednesday. Philippine markets were closed Tuesday for the Labor Day holiday.
But analysts said the euphoria in Philippine financial markets will likely be short-lived. Political tensions are expected to flare up again ahead of congressional and local elections May 14.
The Singapore dollar was slightly firmer against its U.S. counterpart at S$1.8180, compared with S$1.8186 late Monday. Singapore markets were closed Tuesday for the Labor Day holiday.
The Thai currency strengthened to 45.470 baht per dollar, from 45.605 baht late Monday, as a U.S. bank unwounded its long-dollar positions, dealers said.
Against the New Taiwan dollar, the U.S. currency ended at NT$32.900 against the local currency, down from NT$32.918 Monday. Markets in Taipei were closed Tuesday for a national holiday.