SINGAPORE, June 27: The Taiwan dollar rose on Wednesday on month-end demand from exporters as well as buying
from local insurers, while traders said a European summit this week was expected to disappoint and this had already been factored in emerging Asian currency prices to some extent.
The Taiwan unit climbed 0.3 percent against the dollar, and the Philippine peso rose 0.2 percent as market players added short positions to the greenback.
Most emerging Asian currencies had edged higher on Tuesday
as investors covered short positions built up on fears the European summit would not provide signs of progress in tackling
the region’s debt crisis.
Although some regional units extended gains on Wednesday, trading was light and market players said hopes for the summit
were not high, particularly after German Chancellor Angela Merkel said common euro-zone bonds would not happen as long as
she lives.
‘Pricing in some disappointment actually suggests more reasonable expectations which should be positive once dollar strength takes a breather,’ said Andy Ji, Asian currency strategist for Commonwealth Bank of Australia in Singapore.
‘We could see a pullback from being oversold in the Asia ex-Japan space, so there will be short window of opportunity to go long Asia ex-Japan in the coming week,’ he said.
The South Korean won was among the gainers, helped by domestic exporters’ month-end demand, but its gains
were also limited as offshore funds sold the currency on rallies.
‘The market stayed heavy with exporters’ deals. But risk-off sentiment also remained strong and players absorbed all of the exporters’ dollar offers,’ said a local bank dealer in Seoul.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0355 GMT
Japan yen 79.42 79.51 +0.11
Sing dlr 1.2783 1.2772 -0.09
Taiwan dlr 29.892 29.990 +0.33
Korean won 1157.20 1158.40 +0.10
Baht 31.87 31.80 -0.22
Peso 42.38 42.47 +0.22
Rupiah 9480.00 9435.00 -0.47
Rupee 57.07 57.01 -0.11
Ringgit 3.1910 3.1950 +0.13
Yuan 6.3645 6.3629 -0.03
Change so far in 2012
Currency Latest bid End prev year Pct Move
Japan yen 79.42 76.92 -3.15
Sing dlr 1.2783 1.2969 +1.46
Taiwan dlr 29.892 30.290 +1.33
Korean won 1157.20 1151.80 -0.47
Baht 31.87 31.55 -1.00
Peso 42.38 43.84 +3.46
Rupiah 9480.00 9060.00 -4.43
Rupee 57.07 53.08 -6.99
Ringgit 3.1910 3.1685 -0.71
Yuan 6.3645 6.2940 -1.11 (agencies)
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