SE Asian monies sink along with yen
SE Asian monies sink along with yen
SINGAPORE (Dow Jones): Southeast Asian currencies fell in late
trading Friday, dragged down by a plunging Japanese yen.
Regional currencies were rangebound for most of the day, after
dropping early on overnight losses by the yen.
Comments overnight by Japan's new Finance Minister Kiichi
Miyazawa suggesting that markets should be left to find their own
levels sent the dollar soaring Thursday in New York to an
intraday high of Y143.85.
Friday afternoon in Asia, the dollar soared above Y144 after
Europe opened and had a chance to react to Miyazawa's remarks.
Andrew Dermot Fung, treasury economist with Standard Chartered
Bank in London, said the yen will remain a negative influence on
regional currencies for some time to come.
A looming dispute between Malaysia and Singapore over
Singapore's plans to relocate a railway customs facility Saturday
had little effect on currency trading Friday, dealers say.
However, they warned that if the issue is not resolved over
the weekend it could hit both currencies Monday.
"If there are problems over the weekend, then the Singapore
dollar could get whacked," said the local bank trader. "It would
be worse for the Singapore dollar because it is happening in
Singapore."
At late Asian trading, the U.S. dollar was quoted at S$1.7295,
up from S$1.7119 late Thursday in Asia. The U.S. dollar was
quoted at 4.1500 ringgit, up from 4.1260 ringgit late Thursday.
The Thai baht is also lower against the dollar amid what
dealers in Singapore described as thin trading interest.
The U.S. dollar is quoted at 40.9050 baht, up from 40.7050
baht Wednesday.
On the Philippine Dealing System, the U.S. dollar ended at
42.030 pesos, up from 41.995 pesos on Thursday.
In northeast Asia, exporters selling dollars in South Korea to
pay for month-end settlements boosted the won despite the yen's
weakness, dealers in Seoul said.
The dollar closed at 1,230 won, compared with 1,234 won at
Thursday's close.
The New Taiwan dollar finished lower against the U.S.
currency, dragged down by yen weakness and month-end dollar
demand from local importers to settle their import bills, dealers
said in Taipei.
Despite central bank dollar sales to the tune of US$50
million-US$60 million, the U.S. dollar ended at NT$34.369, up
from Thursday's close of NT$34.330.
In London, the dollar also rallied against the yen.
After breaking through the Y144.00 barrier around 0824 GMT for
the first time since July 13, the dollar traded above the
psychologically important Y144.00 level for the rest of the
morning session and peaked at an intraday high of 144.47 around
1017 GMT.
The Deutsche mark also rose against the yen, trading above
Y81.00 for the first time since October 1992, when it was at
Y85.79.
"The markets are under the impression that Japanese
authorities are not too concerned about exchange rates, that
their pain threshold is higher now," Paul Meggyesi, currency
economist at Deutsche Morgan Grenfell said.