Most SE Asian currencies up in thin trading

Most SE Asian currencies up in thin trading

SINGAPORE (Dow Jones): Most Southeast Asian currencies ended Asian hours a touch stronger Wednesday, after a day of minimal trading activity.

In North Asia, too, regional currencies climbed, with the U.S. dollar falling against the South Korean won, to dip briefly below the psychologically important 1,200 level after the central bank released a favorable economic survey.

In general, market liquidity was so thin, with so many participants either inactive or absent altogether, that the remainder were reluctant to attach any importance to the price moves they did see.

"In these conditions small, small orders can move the market a long way. I'm not sure there's much information in these exchange rates," said Marshall Gittler, chief foreign-exchange strategist at Bank of America in Hong Kong, who dismissed Wednesday's movements in regional-currency exchange rates as mere "Brownian motion."

Nevertheless, Gittler did point to the release by the Bank of Korea of a survey showing a marginal improvement in business confidence as evidence that market sentiment toward the South Korean economy and currency is recovering.

At the close of local trading, the U.S. dollar was quoted at 1,200.50 won, above its earlier low of 1,195.00, but down from 1,209.50 at Tuesday's close.

The new Taiwan dollar also rose on Wednesday, edged higher against the U.S. currency by a flood of U.S. dollar sales from exporters tidying their books in time for the year's end.

Despite heavy U.S. dollar purchases from the central bank, estimated at around $200 million, the U.S. currency still slipped to a nine-month intraday low of NT$32.192 - its lowest level since March 6 when the U.S. dollar was offered at NT$32.056.

By the close, the U.S. dollar had recovered a little, to finish at NT$32.246, down from NT$32.263 at the end of trading on

The Singapore dollar ended Asian trading hours flat against the U.S. dollar Wednesday, having barely strayed beyond a 10- point range all day.

Both interbank traders and brokers agreed transaction volumes were negligible, pointing out that the U.S. dollar remains firmly in the center of its recent S$1.6550 to S$1.6650 range.

Late in the Asian day the U.S. dollar was quoted at S$1.6586, down a touch from S$1.6596 late the previous day.

The American dollar finished in Asian trading at 36.63 baht, down from 36.85 baht at the close of trading in Bangkok on Tuesday.

The dollar opened Wednesday at 36.95 baht, but dropped steadily to around 36.61 baht on a trickle of selling before midmorning.