AGL 38.16 Decreased By ▼ -0.06 (-0.16%)
AIRLINK 134.19 Increased By ▲ 5.22 (4.05%)
BOP 8.85 Increased By ▲ 1.00 (12.74%)
CNERGY 4.69 Increased By ▲ 0.03 (0.64%)
DCL 8.67 Increased By ▲ 0.35 (4.21%)
DFML 39.78 Increased By ▲ 0.84 (2.16%)
DGKC 85.15 Increased By ▲ 3.21 (3.92%)
FCCL 34.90 Increased By ▲ 1.48 (4.43%)
FFBL 75.60 Decreased By ▼ -0.11 (-0.15%)
FFL 12.74 Decreased By ▼ -0.08 (-0.62%)
HUBC 109.45 Decreased By ▼ -0.91 (-0.82%)
HUMNL 14.10 Increased By ▲ 0.09 (0.64%)
KEL 5.40 Increased By ▲ 0.25 (4.85%)
KOSM 7.75 Increased By ▲ 0.08 (1.04%)
MLCF 41.37 Increased By ▲ 1.57 (3.94%)
NBP 69.70 Decreased By ▼ -2.62 (-3.62%)
OGDC 193.62 Increased By ▲ 5.33 (2.83%)
PAEL 26.21 Increased By ▲ 0.58 (2.26%)
PIBTL 7.42 Increased By ▲ 0.05 (0.68%)
PPL 163.85 Increased By ▲ 11.18 (7.32%)
PRL 26.36 Increased By ▲ 0.97 (3.82%)
PTC 19.47 Increased By ▲ 1.77 (10%)
SEARL 84.40 Increased By ▲ 1.98 (2.4%)
TELE 7.99 Increased By ▲ 0.40 (5.27%)
TOMCL 34.05 Increased By ▲ 1.48 (4.54%)
TPLP 8.72 Increased By ▲ 0.30 (3.56%)
TREET 17.18 Increased By ▲ 0.40 (2.38%)
TRG 61.00 Increased By ▲ 4.96 (8.85%)
UNITY 28.96 Increased By ▲ 0.18 (0.63%)
WTL 1.37 Increased By ▲ 0.02 (1.48%)
BR100 10,786 Increased By 127.6 (1.2%)
BR30 32,266 Increased By 934.6 (2.98%)
KSE100 100,083 Increased By 813.5 (0.82%)
KSE30 31,193 Increased By 160.9 (0.52%)

The South Korean won and the Taiwan dollar led gains among emerging Asian currencies on Monday as the yen's rebound caused investors to cover short positions in the currencies of Japan's export competitors. The yen rebounded after the United States said it would watch Japan's policies to ensure it was not manipulating its currency. Regional currencies also found support from the Chinese yuan hitting a record against the dollar.
But most emerging Asian currencies gave up some of their initial gains as weaker-than-expected Chinese growth data added to concerns stoked by US indicators about the global economic outlook. The won rose on demand from exporters for settlements and stop-loss dollar selling despite dollar demand linked to local companies' dividend payments to foreign shareholders.
The won's appreciation helped the Taiwan dollar advance in thin trading, traders said. Their gains came as the yen rose after the US Treasury Department on Friday said in a semi-annual report on currency practices of major trading partners that it would press Japan to adhere to the commitment it made in February as a member of the Group of Seven and Group of 20 nations to let the market determine exchange rates.
South Korea and Taiwan are seen as major victims of the yen's weakness resulting from the Bank of Japan's bold monetary policy easing to boost growth and inflation, analysts and traders have said. "It is difficult to be more positive on emerging Asian currencies, given signs that the US and China economies are losing steam," said Jeong My-young, Samsung Futures' research head in Seoul.
The won has lost 4.5 percent against the dollar so far this year, while the yen has dropped 11.6 percent, according to Thomson Reuters data. The Taiwan dollar rose in subdued trading, tracking a firmer won. Despite weaker-than-expected China's growth data, the Taiwan dollar extended gains as the won appreciated further in the afternoon, traders said.
But exporters and foreign financial institutions hesitated to chase the island's currency as they did not expect the yen to gain further. The Singapore dollar edged up on a higher won and a firm yen. The city-state's currency also found support from yuan proxy plays, traders said. But the Singapore dollar has chart resistance at the 200-day moving average, which is currently at 1.2349. It has been closing daily sessions weaker than the average since early March.

Copyright Reuters, 2013

Comments

Comments are closed.