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.