Asian currencies were a touch firmer ahead of key US jobs numbers due later on Friday, with the Philippine peso extending this week's rally to hit a four-year peak against the dollar. The peso rose as far as 50.70 per United States dollar, taking its gains this week to about 1.2 percent.
Strong foreign demand for local bonds and stocks, remittances from overseas workers, an easing of political worries and upbeat economic data have all been pushing the peso higher. But after a week of gains, the peso rally was starting to run out of steam, dealers said. "Dollar/peso has been oversold in the last few days so it is time for a pause and there was bit of profit taking around 50.70," said a trader in Manila.
He said it was not clear if the central bank had intervened in the market to curb peso strength. "The peso is moving in accordance with the market," central bank Governor Amando Tetangco said on Friday. "Good economic data continues to support the currency. What we would rather not see is too much volatility."
The Indonesian rupiah was stuck in a tight 9,095 to 9,089 per dollar range.
It drew some support from data showing Indonesia's annual consumer inflation rate fell to 14.9 percent in August, its lowest level since last September.
Data showing a stronger-than-expected 18.7 percent rise in South Korean exports in August underpinned the won around 959 per dollar, the intraday high.
The Taiwan dollar firmed slightly to about 32.87 per US dollar as a rally in local equities lifted expectations of foreign fund inflows.
The United States August non-farm payrolls report is due at 1230 GMT and economists polled by Reuters forecast a median 120,000 new jobs were created compared with 113,000 in July.
"Over the last three weeks the focus has shifted to the risks to growth from the risks to inflation," said Jimmy Koh, head of economics and treasury at United Overseas Bank. "The payrolls should give us a good sense of how much of a moderation in growth to expect."
The Chinese yuan hit 7.9525 per dollar, matching a post-revaluation high set on Thursday, before profit taking pulled the currency lower on the day. Yuan strength this week has helped offset the impact of yen weakness on Asian currencies.
The yen, which often sets the regional tone, hit a record low against the euro and six-week lows against the dollar on Thursday.
"A different dynamic seems to be driving Asian currencies and it appears to be linked much more strongly to the yuan," said RBC Capital markets senior currency strategist Sue Trinh.
Dealers watched the Singapore dollar for signs of intervention from the Monetary Authority of Singapore (MAS). The currency was estimated to be at the strong end of its trading band, partly because of strength against the yen.
"My estimates are that the Singapore dollar is trading 1.5 percent above the mid-point of the band," said Trinh. "That is somewhat surprising and there is a fair amount of concern that the MAS might come in to prevent further gains in the Sing dollar, which is preventing US dollar/Sing dollar from trading too much below 1.57."
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