Friday, September 3, 2010

Ringgit at 13-year high; c.banks cap baht, won gains

SINGAPORE: The Malaysian ringgit hit a new 13-year peak on Friday, Sept 3 buoyed by the country's stronger-than-expected exports, while central banks in South Korean and Thailand intervened to cap gains in their currencies.

Asian stocks rose while the euro and other high-yielding currencies were supported by an improvement in U.S. housing and jobless claims data, as the market's focus turned to all-important U.S. nonfarm payrolls numbers expected at 1230 GMT.

RINGGIT

Malaysian ringgit gained a quarter of a percent to a 13-year high of 3.1190 per dollar after data late on Thursday showed Malaysia's exports rose a stronger-than-expected 13.5 percent in July from a year earlier.

The market shrugged off the central bank's decision Thursday to keep interest rates steady because the decision had been expected.

Traders expect the ringgit to move between 3.10-3.12 on Friday, ahead of U.S. nonfarm payrolls.

The ringgit has been supported by fund inflows into the country and strong July export numbers showed a firmer ringgit has not affected demand, analysts say.

Ringgit has gained 9.6 percent against the dollar this year to make it the region's top performer after Japanese yen.

At 3.14pm, the ringgit was at 3.1217 against the greenback.

SINGAPORE DOLLAR

The Singapore dollar hovered near 1.3470 per dollar after hitting a record high of 1.3443 overnight.

The Monetary Authority of Singapore (MAS), the island's central bank, refrained from intervening after being spotting buying U.S. dollar overnight to cap the local unit.

"There is no sign of MAS in the market as Singapore dollar is trading at the strong side of its NEER, signalling its tolerance of firmer currency. Though market may be tempted for further USD shorts, it will be cautious in light of today's NFP data," said Suresh Ramanathan, strategist at CIMB.

WON

The won gained nearly 0.6 percent to a two-week high at 1,174 per dollar as the authorities were spotted buying dollars in the market to tap the won't rally.

Won was supported by foreign investment in local stocks as worries eased about a serious slowdown in the U.S. economy.

U.S. August payrolls data later on Friday is also causing some caution in dealing.

"Few will push up the won more after experiencing intervention. The authorities may step in the market again," said a foreign bank dealer.

Seoul shares <.KS11> were up 0.2 percent as foreigners bought a net 87.3 billion won in local shares.

BAHT

Thai baht hit a 29-month high, prompting Bank of Thailand to intervene.

"The dollar sell-off resumes after the passive comments by Thai officials attending the government meeting on the baht strength yesterday. It has ranged 31.13 to 31.16 with many BOT agents seen actively bidding for dollars at all these levels," a Bangkok-based trader said.

The baht has gained nearly 7 percent against the dollar this year. - Reuters


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