SE Asian monies stronger against greenback
SE Asian monies stronger against greenback
SINGAPORE (Dow Jones): Southeast Asian currencies ended local
trading hours Tuesday stronger against the U.S. dollar, lifted by
healthy flows of foreign funds into domestic asset markets.
In Southeast Asia, both the Singapore dollar and the
Philippine peso edged upward, while the baht crept a fraction
higher in offshore trading thinned by the closure of the Bangkok
market for a public holiday.
The Indonesian rupiah ended barely changed, despite the news
that the World Bank had withheld US$600 million in assistance
funding.
In North Asia, the South Korean won overcame government-
directed selling to close at its highest level against the U.S.
dollar in three weeks. The new Taiwan dollar, too, ended a touch
higher.
Singapore's buoyant stock market continued to attract foreign
investment, helping to lift the local currency.
As the U.S. dollar was forced down through the S$1.7250 level,
a number of offshore players were stopped out of the long U.S.
dollar positions they had assumed the previous week, pushing the
U.S. currency lower still.
Late in Asian trading, the U.S. dollar was quoted at S$1.7232,
down from S$1.7263 late the day before.
Fund inflows were also credited with lifting the Philippine
peso against the U.S. dollar. At the close of trading on the
Philippine Dealing System, the U.S. currency was quoted at 38.295
pesos, down from 38.440 pesos at Monday's close.
With the domestic market in Bangkok closed Tuesday for
Thailand's three-day Songkran Festival holiday, offshore trading
in the baht was quieter than in recent days.
Although dealers in Singapore reported some U.S. dollar offers
taken above the 38.00 baht level in early trading, the U.S.
currency drifted lower over the course of the Asian day to end
offshore trading at baht 37.9150, down from 38.0250 the day
before.
After it hit a six-month high of 38.01 baht Monday, the U.S.
currency is likely to be bought up to levels around 38.40 before
profit-taking sets in, according to one baht dealer in the
offshore market.
Elsewhere, the Indonesian rupiah market remained in the
doldrums. News that the World Bank had held back $600 million of
assistance funding, fearing it might end up in the pockets of
officials responsible for its disbursement, had little impact on
the currency.
Remarks made by Bank Indonesia director Miranda Goeltom, who
said that rupiah interest rates will continue to fall this week,
were also ignored as dealers continued to shun the market.
With few players willing to participate, dollar offers from
state banks in Jakarta were sufficient to cap the U.S. currency,
said traders.
Late in Asian dealing the U.S. dollar was quoted at Rp 8,735,
flat compared with Rp 8,730 the previous day.
In North Asia, the South Korean won strengthened markedly on
foreign fund inflows as premiums in the U.S. dollar/won forwards
market collapsed to levels close to par.
The U.S. dollar sales were heavy enough to cause Korea's
state-run Export-Import Bank to cease bidding for U.S. dollars at
1,223 won, the level at which it has supported the U.S. currency
in recent days, allowing the won to strengthen.
"It looks as if Exim Bank has shifted its bid lower," said one
trader, as the U.S. dollar dropped to close at 1,221.70 won, down
from 1,223.10 Monday.
Selling pressure is likely to push the U.S. dollar lower still
over coming sessions, predicted the trader, who added: "If it
wasn't for Exim Bank, the won would be a lot stronger now."
The new Taiwan dollar also benefited from fund inflows on
Tuesday, with the U.S. currency slipping to close at NT$33.000,
down from NT$33.010 the previous day.