Won up on trade data, others mixed

Won up on trade data, others mixed

SINGAPORE (Dow Jones): The South Korean won surged against the U.S. dollar on stronger-than-expected trade data Friday, while other regional currencies were mixed in subdued trading.

The New Taiwan dollar, Philippine peso and Singapore dollar were all weaker, while the Thai baht was stronger.

The won opened the day stronger and got an additional bounce after the government reported August's trade surplus was 50% higher than analysts had been expecting.

It took the threat of intervention by the Korean Finance Ministry to halt the rapid appreciation of the won, which closed at its highest level against the dollar in nearly five months.

At the end of trading, the dollar was quoted at 1,105.3 won, down from 1,108.8 won late Thursday. It was the won's strongest performance since April 3, when it hit 1,104.7 won against the dollar in intraday trading.

South Korea posted a trade surplus of $1.59 billion in August, surpassing market expectations of a $1 billion rise.

The jump in the won apparently was greater than what the Finance Ministry was comfortable with, said Iris Teo, currency strategist at Standard & Poor's MMS.

"The will usually warn them (traders) for a couple of days and if the market is not heeding their advice they will intervene," Teo said.

Positive economic data was also supportive for the Indonesian rupiah in quiet, pre-weekend trading.

Jakarta reported the country's trade surplus rose to a larger- than-expected $2.86 billion in July as exports increased despite a fall off in global oil prices. Additionally, the consumer price index rose a scant 0.5 percent in August from July, easing pressure on Bank Indonesia to raise rates to counter inflationary pressures.

Late Friday in Asia, the dollar was quoted at Rp 8,298, down from Rp 8,310 late Thursday.

Falling stock prices pushed the New Taiwan dollar lower. The U.S. dollar closed at NT$31.083, up from NT$31.070 late Thursday.

The Weighted Price Index of the Taiwan Stock Exchange fell by 196.92 points, or 2.6 percent, to close at 7,420.06 Friday. Analysts said the ailing stock market will likely continue to weigh on the New Taiwan dollar over the short term. But excessive volatility in the currency will probably be muted by central bank intervention, they said.

The Singapore dollar was marginally softer in range-bound trading.

Late Friday, the U.S. dollar was quoted at S$1.7210, up from S$1.7192 near the end of the previous session.

The U.S. dollar slipped against its Singapore counterpart in early trading in line with its decline against the Indonesian rupiah. But light buying by U.S. names lifted the U.S. currency later in the session.

The Thai baht opened higher, but gave up some of its gains later in the day after central bank Governor Chatu Mongol Sonakul said a weaker baht will help the country's competitiveness in export markets.

The dollar was as low as 40.795 baht early in the session. Steady dollar buying pushed the U.S. currency to 40.925 baht near the end of trading, but it was still lower than 40.935 baht late Thursday.

Concerns over the Philippines ballooning budget deficit and oil price increases weighed on the peso.

At the close on the Philippine Dealing System, the dollar was quoted at 45.150 pesos, up from 45.137 pesos at Thursday's close.