The South Korean won and the Thai baht were lifted by news Dubai received a $10 billion bailout from fellow UAE member Abu Dhabi, while most Asian stocks rallied on improved risk appetite. The won rebounded sharply, gaining 0.7 percent against the dollar by Monday afternoon. It rose to 1,156.25 late on Monday, recovering from its early drop to 1,166.8 and compared with a domestic close of 1,164.0 on Friday.
The baht also gained but other Asian currencies failed to budge from weaker levels when the dollar rallied on speculation that the Fed would start tightening by mid-2010 and on upbeat US retail sales data and consumer sentiment.
BAHT The baht rose a shade from late Friday to 33.10 against the dollar after the Dubai statement but it hovered in a narrow range during most of Monday. Dollar/baht was bid at 33.10 against 33.11 late on Friday and 33.27 a month ago. The Thai currency has gained 5.14 percent this year.
RUPIAH Indonesian rupiah rose in reaction to Dubai announcement it had received $10 billion from Abu Dhabi to help it repay a bond maturing on Monday. "Dollars were sold off to 9,465 from the 9,480 level after the news. Rupiah may rally to 9450 during the rest of today," a Jakarta-based trader said. Dollar/rupiah was bid at 9,460, still weaker than 9,435 seen late on Friday. Dealers said the Dubai statement failed to boost the rupiah's sluggish NDF trade.
PESO Philippine peso eased by 0.40 percent from Friday's close on a strong dollar rally in the morning. "Dollar strengthens globally and is only dragging the peso down. It should range between 46.15-35 today," a Manila-based dealer said. "But peso should resume appreciating later this week, propped up by inflows of foreign remittances," he said. Dollar/peso was bid at 46.32 against a 46.13 close on Friday.
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