Rupiah, other Asian monies up
Rupiah, other Asian monies up
Netty Ismail, Dow Jones, Singapore
Asian currencies were stronger late Thursday, as the dollar
took a drubbing in international foreign exchange markets,
particularly against the yen.
The yen vaulted through the psychologically important 130
yen threshold against the dollar to trade at two-and-a-half month
highs, after dollar sales by foreign investors triggered a slew
of stop-loss orders.
At 0900 GMT (4.00 p.m. Jakarta time), the dollar was quoted at
129.32 yen, below 130.77 yen late Wednesday in New York. The
dollar had shed more than a full yen during the overnight
session.
The yen also chalked up gains against its other Asian
counterparts, as the Japanese currency's vigor was unrivaled.
With the market having largely priced in expectations of an
economic recovery in Asia, excluding Japan, later in the year,
participants who had gone long Asian currencies against the yen
in the last few months were now unwinding those positions; at the
same time that they unloaded their short yen positions against
the dollar.
The yen's strength was evident in the yen/won.
The yen rose to 10.17 won, from around 9.9 won just two days
ago, even as the South Korean currency strengthened against the
dollar Thursday.
Against the dollar, the won closed at 1,314.5 won, slightly
stronger compared with 1,316.3 won Wednesday.
The market shrugged off the Bank of Korea's as-expected
decision Thursday to keep its call rate target unchanged at 4
percent in March, as the economy shows signs of accelerated
growth and inflationary pressures remain benign. The overnight
call rate target has been maintained at 4 percent since late last
year.
Late in the day, as the dollar collapsed below the key 129 yen
level, several Asian currencies extended their gains. At 0940
GMT, the dollar was quoted at 128.95 yen.
As Asian currencies continue to receive a boost from the yen's
gains and capital inflows in the region, some of the central
banks - particularly in Taiwan, Singapore and Thailand - could
become concerned over any excessive appreciation in their
currencies. Since the anticipated economic recovery in the region
has yet to take hold, it would be too early for the monetary
authorities to allow their currencies to strengthen too much.
The U.S. dollar closed at NT$34.989, down from NT$35.030
Wednesday. Dealings were valued at US$983 million, higher than
US$602 million Wednesday. A dealer in Taipei said the central
bank accounted for around half of Thursday's turnover.
As the baht climbed to a one-year high, the Thai central bank
continued with its recent dollar-purchases to check its strength,
although not aggressively, dealers said.
The dollar was at 43.275 baht, lower than 43.515 baht late
Wednesday.
The Singapore dollar was at S$1.8208 against its U.S.
counterpart, stronger compared with S$1.8263.
With the Singapore dollar currently trading near the stronger
end of the central bank's policy band, there's been ongoing
jitters about intervention, dealers said.
The Monetary Authority of Singapore guides the Singapore
dollar within a trading band against a basket of currencies of
the city state's major trading partners and key competitors. In
January, the MAS restored a tighter policy band.
Inspired by its regional peers, the Philippine peso cracked
above the psychologically important 51.00 pesos resistance level
against the dollar for the first time in two-and-a-half months.
The dollar ended at 50.99 pesos, lower than 51.09 pesos
Wednesday.
The Indonesian currency was slightly firmer at Rp 9,945 to the
dollar, compared with Rp 9,950 late Wednesday.