SINGAPORE: Most emerging Asian currencies rose on Tuesday as regional stocks touched fresh three-year highs, while caution grew before a slew of U.S. economic data and the Federal Reserve's policy meeting this week.
The Taiwan dollar hit a two-week high on stock
inflows and demand from exporters. The South Korean won
gained as sustained foreign buying powered Seoul
shares to a three-year peak.
Financial markets in many Asian countries - India,
Indonesia, Malaysia and the Philippines - are closed to mark the
end of Ramadan, the Muslim fasting month.
Asian shares rose as a rally in Chinese markets encouraged
investors in the region.
"A strong Chinese momentum keeps supporting Asia FX," said
Jeong My-young, Samsung Futures' research head in Seoul.
"The Fed has not mentioned it would start anything yet and
Yellen is still seen as market friendly," Jeong added, referring
to Fed chief Janet Yellen.
Investors kept an eye on the Fed's two-day policy review
starting later in the day. The U.S. central bank is widely
expected to cut its monthly bond-buying programme by another $10
billion, but the focus is on any clues to the timing of the
first interest rate hike.
Other key data such as U.S. gross domestic product and the
non-farm payrolls report are also in focus.
The dollar held steady against a basket of six major
currencies.
TAIWAN DOLLAR
The Taiwan dollar rose 0.3 percent to 29.941 per U.S.
dollar, its strongest since July 15.
Foreign investors bought the island's currency for local
shares even though the main index eased. Exporters also
purchased the currency around 29.950 for month-end settlements,
traders said.
Domestic importers, however, bought the greenback for
payments, limiting the Taiwan dollar's upside.
WON
The won gained as foreign investors extended their buying
spree to an 11th consecutive session in South Korea's main stock
market. Exporters were expected to buy the currency for
month-end settlements.
The South Korean currency, however, pared some of its
earlier gains on dollar demand from importers around 1,024,
traders said.
South Korea's current account surplus in June narrowed with
exports faltering but imports gathering pace, central bank data
showed earlier.
"Despite hopes of month-end demand, the won's upside is well
limited," said a foreign bank trader in Seoul.
The trader said a weaker won tends to support domestic
stocks.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
Japan yen 101.97 101.86 -0.11
Sing dlr 1.2419 1.2418 -0.01
Taiwan dlr 29.946 30.037 +0.30
Korean won 1024.30 1026.30 +0.20
Baht 31.81 31.80 -0.03
*Peso 43.36 43.36 +0.00
*Rupiah 11575.00 11575.00 +0.00
*Rupee 60.13 60.13 +0.00
*Ringgit 3.1730 3.1745 +0.05
Yuan 6.1816 6.1863 +0.08
Change so far in 2014
Currency Latest bid End prev year Pct Move
Japan yen 101.97 105.28 +3.24
Sing dlr 1.2419 1.2632 +1.72
Taiwan dlr 29.946 29.950 +0.01
Korean won 1024.30 1055.40 +3.04
Baht 31.81 32.86 +3.30
Peso 43.36 44.40 +2.39
Rupiah 11575.00 12160.00 +5.05
Rupee 60.13 61.80 +2.79
Ringgit 3.1730 3.2755 +3.23
Yuan 6.1816 6.0539 -2.07
* Financial markets in India, Indonesia, Malaysia and
Philippines are closed for holidays.- Reuters
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