Thai Baht, Singapore dollar rise; S. Korean won declines
Thai Baht, Singapore dollar rise; S. Korean won declines
Bloomberg
Singapore
The Thai baht and Singapore dollar rose after crude-oil prices
fell from a record high, easing concern that growth in regional
profits and economies will slow.
Asian currencies fell in the past six months against the
dollar, partly as importers sold more of their currencies to pay
for oil, denominated in U.S. dollars. The region buys almost a
third of the world's supply of crude.
"If oil prices are retreating, and the move down is considered
substantive, it should provide relief for Asian currencies," said
Philip Wee, an analyst in Singapore at DBS Group Holdings,
Southeast Asia's biggest lender.
The baht gained 0.2 percent to 41.49 against the dollar as of
9:07 a.m. Bangkok time, and the Singapore dollar rose 0.1 percent
to S$1.6919. Indonesia's rupiah traded at 9,174. The Taiwan
dollar was little changed at NT$33.99, according to Taipei Forex
Inc.
The Asia-Pacific region bought 29 percent of the world's crude
oil last year, according to BP Plc, Europe's largest petroleum
company.
Crude oil for November delivery fell for a second day, sliding
as much as 0.5 percent to $49.26 a barrel. The decline cut this
year's price gain to 51.8 percent.
The International Monetary Fund yesterday said in a report
that it cut its 2005 forecasts for Asia's emerging economies,
partly because of higher oil prices.
Korean Importers
The region may grow 6.5 percent next year, less than the 6.8
percent expansion forecast in April, the Washington-based lender
said in its World Economic Outlook. The IMF raised its forecast
for growth this year to 7.3 percent from 7.2 percent.
In South Korea, the won fell on speculation importers will
today buy more dollars to pay for costlier oil after financial
markets were closed for a three-day holiday that ended yesterday.
"Importers need to buy more dollars to pay for the higher
priced oil," weakening the won, said Chang Yong Han, a currency
trader at Koram Bank in Seoul.
The won traded at 1,153.80 against the dollar from 1,149.40 on
Sept. 24, according to Seoul Money Brokerage Services Ltd.
Koram, which was purchased by Citigroup Inc. in May, will be
renamed Citibank Korea Inc., the Korean bank said on Sept. 8 in a
statement.
Steven Chang, vice president of global markets at State Street
Bank & Trust Co. in Hong Kong, said he may buy currencies such as
the Australian dollar against Asian counterparts.
Australia's currency may extend the 1.6 percent gain in the
past month against the U.S. dollar as prices of commodities such
as copper and gold rise, raising exporters' revenue prospects.
Exports account for a fifth of the Australian economy and raw
materials make up two-thirds of overseas shipments.
Copper prices in New York rose to the highest in almost seven
months. Gold futures traded near a five-week closing high.
Still, most Asian currencies strengthened today after a report
showed U.S. oil inventories unexpectedly rose last week.
The Philippine peso traded at 56.27 from yesterday's 56.315,
according to Bankers Association of the Philippines.
The peso may gain to "better than 56" against the dollar
starting in October, boosted by demand from families of overseas
Filipino workers, central bank Deputy Governor Amando Tetangco on
Sept. 28 said in a mobile-phone text message from Manila.
Nestor Espenilla, assistant central bank governor, told
reporters in London on Sept. 27 that the bank may seek to "smooth
out disturbances in the market" by buying pesos.
A falling currency becomes a concern if it stokes inflation
through higher import prices, the central bank's Espenilla said.
It's also a "worry" for the government because it increases
the foreign-debt burden, Finance Secretary Juanita Amatong said
on the same day.
"I won't be surprised" if the central bank bought pesos, DBS's
Wee said. "It's in their interest to cap the peso's decline.