BLBG:Asian Currencies Fluctuate as Europe Concern Offsets U.S. Data
Asia currencies fluctuated near an eight-month high as concern Europe’s debt crisis will worsen was offset by a U.S. consumer spending report that topped estimates.
European leaders are struggling to find ways to fill a financing gap for Greece and will hold a conference call tomorrow amid worries the country may have to exit the euro. Personal spending in the world’s largest economy rose by the most since February, official data showed yesterday. U.S. stock trading was canceled for a second day, joining bond markets, as Sandy, the Atlantic Ocean’s biggest-ever tropical storm, sent floodwater gushing into New York’s five boroughs.
“Markets are pretty cautious now,” said Vishnu Varathan, a Singapore-based economist at Mizuho Corporate Bank Ltd. “There’s a natural disaster that’s taking place and there are things going on in the euro zone, where it’s less than ideal.”
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies outside of Japan, touched 117.71, near the 117.93 level reached on Oct. 25 that was the highest since February. Indonesia’s rupiah weakened 0.2 percent to 9,628 per dollar as of 9:44 a.m. in Jakarta, according to prices compiled by Bloomberg. Thailand’s baht fell 0.1 percent to 30.75, while South Korea’s won gained 0.1 percent to 1,095.40.
U.S. Household purchases rose 0.8 percent in September from a year earlier, beating the 0.6 percent forecast in a Bloomberg survey and a 0.5 percent increase in August. The Bank of Japan meets today after expanding its asset-purchase program on Sept. 19. Official data today showed industrial production declined 4.1 percent in September from the previous month, bolstering the case for more monetary easing.
South Korean Surplus
South Korea’s won traded near a 13-month high as data showed the nation’s current-account surplus widened to near an all-time high. The excess was $6.07 billion last month, just shy of the $6.14 billion recorded in July. The central bank said today it will conduct a review of banks’ currency-forward positions next month, which may lead to regulation.
The current-account surplus is a supportive factor for the won, but was overshadowed by the forward-position review report, said Cho Young Bok, a Seoul-based currency trader at Daegu Bank, “Trading will be slow until the outcome of the Bank of Japan meeting today,” he said.
The yuan was little changed at 6.2445 per dollar as the People’s Bank of China set the currency’s daily fixing 0.06 percent weaker, the first reduction in four days. The yuan has rallied 1.9 percent since the end of July. The rapid appreciation isn’t sustainable and poses a hidden threat to the financial system, according to a front-page China Securities Journal commentary today.
Elsewhere, Taiwan’s dollar strengthened 0.1 percent to NT$29.253 against its U.S. counterpart. Malaysia’s ringgit and the Philippine peso were little changed at 3.0605 and 41.278, respectively. The Vietnamese dong was steady at 20,845.
To contact the reporter on this story: Jiyeun Lee in Seoul at jlee1029@bloomberg.net Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net
To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net
