Most Asian monies up late, rupiah gains
Most Asian monies up late, rupiah gains
Alan Yonan Jr., Dow Jones, Singapore
Most Asian currencies strengthened Wednesday as expectations
of further declines in U.S. stock prices and Middle East tensions
fueled investor disenchantment with the dollar.
Market players were bracing for a drop at the Wall Street open
following the release of negative news by a host of U.S.
technology companies in after-hours trading.
Profit warnings issued by the likes of Apple Computer and
Advanced Micro Devices after markets closed added to the
increasingly pessimistic view of U.S. stocks.
In Asia, the dollar declined against all regional currencies
except the Philippine peso.
The dollar also fell against its major counterparts, hitting a
17-month low against the euro. The dollar's fall against the yen
was limited by concerns that the Bank of Japan might intervene in
currency markets to keep the yen's strength in check.
"The dollar is looking very vulnerable," said Peter Redward,
currency strategist at Deutsche Bank in Singapore.
The U.S. currency is likely to come under further pressure
this week due to expectations of declines on Wall Street and
negative news on the U.S. trade balance, he added.
Redward said a government report Thursday is expected to show
the U.S. goods and services trade gap remained stubbornly high at
around $32 billion in April.
The South Korean won powered ahead despite a 4.1 percent
plunge in the local stock market.
The dollar closed at 1,230.3 won, down from 1,234.0 won
Tuesday.
Although foreigners were net sellers of Korean shares
Wednesday, the fact that they had been net buyers in the three
previous sessions was supportive of the won.
The won's rapid appreciation since March has fueled concern
among government officials that the currency's strength could
hurt the competitiveness of Korean exporters. The officials are
said to be most worried about the won's strength against the yen
because Japan is a major competitor of Korea in export markets.
In Taipei, the central bank actively intervened in the foreign
exchange market to cap the local currency's strength as market
players built short U.S. dollar positions.
The U.S. dollar ended at NT$34.099, down from Tuesday's
NT$34.117.
Unmet offers for the U.S. dollar continue to line up, which
means the U.S. currency could tumble further Thursday, especially
if it falls below the 124-yen level, dealers said.
The Singapore dollar tracked the stronger yen and euro higher
in thin trade. Banks' unwinding of long U.S. dollar positions
also helped the local currency.
Late in Asia the U.S. dollar was quoted at S$1.7867, down from
S$1.7909 late Tuesday in Asia.
The Singapore dollar should continue to appreciate against the
U.S. currency for the rest of 2002 as the Asian nation's export
growth should continue to outpace the slow recovery in its
largest trading partner, according to a research report from JP
Morgan.
The rupiah gained amid reports that the Indonesian Bank
Restructuring Agency sold dollars through state-owned banks.
Near the end of Asian trading the dollar was quoted at Rp
8,625 rupiah, down from Rp 8,655 late Tuesday.
IBRA has a stock of dollars earned from asset sales that it
transfers into rupiah when the market is thin, to help the local
currency.
Corporate demand for the U.S. currency pulled the dollar
higher against the Philippine peso in late trading.
The dollar closed at 52.210 pesos on the Philippine Dealing
System, well off its intraday low of 49.990 pesos, and above its
close of 50.150 pesos Tuesday.
An announcement by Philippine conglomerate Benpres Holdings
Corp. that it would not be able to make payments due this week on
two loans also fueled late dollar buying.
The Thai baht strengthened to a 16-month high, following other
regional currencies higher in the absence of any market moving
news.
Late in Asia the dollar was quoted at 42.120 baht, down from
42.180 baht late Tuesday.