Most Asian monies up late on stronger stocks, yen
Most Asian monies up late on stronger stocks, yen
Nirmala Menon, Dow Jones, Kuala Lumpur
Asian currencies were broadly higher against the U.S. dollar Wednesday as stocks recovered across the region after an overnight rally on Wall Street, and on a steady yen.
Profit-taking on the dollar against some regional units, and sales of the greenback by exporters were other factors cited to explain the rise in some regional units.
However, market participants said the dollar is maintaining a firm undertone amid speculation the U.S. Federal Reserve could slash interest rates to boost the U.S. sluggish economy.
"Today, the dollar/yen stabilized, so has the regional," said Emmanuel Ng, Singapore-based economist at Bank of Tokyo- Mitsubishi.
Thio Chin Loo, senior currency analyst at BNP Paribas in Singapore, added that "basically, the market is still running on a theme of risk aversion, capital repatriation and liquidation of existing positions."
However, concerns over the U.S. economy will likely weigh on the greenback in coming days, even as an increasingly number of market observers expect the Fed to cut interest rates to prevent the world's largest economy from sinking into a recession - and by extension dragging down the global economy.
The South Korean won resumed its bullish run as investors cheered foreign purchases of local shares.
Profit taking in the dollar after its recent rise, and exporters' dollar sales, also helped the won gain.
The U.S. dollar closed at 1,203.2 won, down from Tuesday's six-week closing high of 1,209.2 won, and after trading between 1,202.5 won and 1,211.5 won.
The greenback lost ground against the New Taiwan dollar, which was also boosted by a stock market rebound.
Exporters and individuals reportedly sold the U.S. dollar against the Taiwan currency after it rose past NT$34.00 Tuesday.
Cross-strait tensions following pro-independence remarks over the weekend by Taiwan President Chen Shui-bian also appeared to have faded.
The dollar ended at NT$33.895, down from NT$34.030 Tuesday, after trading between NT$33.889 and NT$34.085.
In the Philippines, the dollar ended at 51.690 pesos, down from 51.770 pesos Tuesday, after moving between 51.670 pesos and 51.930 pesos in intraday trading.
Meanwhile, the Indonesian rupiah ended slightly stronger after the central bank intervened to sell dollars. The dollar ended at Rp 9,070, down slightly from the previous close at Rp 9,080, after rising to an intraday high of Rp 9,100. Traders said that relatively thin trading volume accentuated the dollar's fall.
During the day, local auto company Astra Daihatsu Motor was also suspected of selling Rp 427.5 billion worth of U.S. dollars received from Japan's Daihatsu, which further helped drag the pair lower, traders said.
The greenback had a choppy ride against the Singapore dollar, veering between gains and losses in thin trading ahead of the long weekend.
In late Asian trading, the greenback was quoted around S$1.7709, from S$1.7684 Tuesday. The pair moved between S$1.7685 and S$1.7738 in intraday trading.
Currency strategists peg the pair's resistance at S$1.7750.
Singapore markets are closed Friday for the country's National Day holiday.
The dollar also rose slightly against the Thai baht to 42.53 baht in late Asian trading, from 42.45 baht Tuesday.
Dealers said Bank of Thailand governor remarks late Tuesday that the baht has stabilized and is moving in line with the U.S. dollar and other major currencies is a signal to the market the central bank intervened successfully in recent days to curb the baht's swing.
This is likely to keep the pair locked in a range between 42.40 baht and 42.70 baht, dealers said.