SINGAPORE, Sep 26 (Reuters) Most Asian currencies rose against a broadly weaker dollar on Wednesday as investors positioned for another Fed rate cut next month after U.S. data showed sluggish housing sales and consumer confidence.
The high-yielding Philippine peso
The Indonesian rupiah
The Malaysian ringgit
''We think it's a case of general dollar malaise returning in the near term as the markets are picking on any signs of weakness in (U.S.) housing sales and consumer confidence,'' said Emmanuel Ng, a currency strategist at OCBC Bank.
Market players had pretty much factored in another 25-basis-point cut in the federal funds rate next month, following a hefty half point last Tuesday, Ng said.
The dollar hit a record low against the euro
A trader in Manila said investors were watching the Philippine Senate's inquiry into a 0 million broadband deal with China's ZTE Corp <0763.HK>, which analysts say may affect the stability of President Gloria Macapagal Arroyo's government.
''The peso should be choppy but confined within the 45.10 to 45.50 range,'' he said.
On Tuesday, India relaxed rules on the amount of money companies and individuals can send abroad in a bid to offset capital inflows that have propelled the rupee to nine-year highs.
But analysts belive such efforts to stimulate capital outflows would have limited iimmediate effect on the currency.
''First, the prospect of another U.S. rate cut will increase the rupee's rate differential advantage. Second, real investors will now be looking at tapping India's potential domestic demand,'' analysts at DBS Bank said in a research note.
CURRENCIES VS U.S. DOLLAR Change on the day at 0324 GMT Currency Latest bid Previous day Pct Move Japan yen 114.92 114.71 -0.18 Sing dlr 1.4975 1.5009 +0.23 Taiwan dlr 32.942 32.953 +0.03 Korean won 920.80 920.80 +0.00 Baht 34.22 34.17 -0.15 Peso 45.19 45.38 +0.43 Rupiah 9140.00 9160.00 +0.22 Rupee 39.74 39.80 +0.16 Ringgit 3.4260 3.4390 +0.38 Yuan 7.5099 7.5112 +0.02 Change so far in 2007 Currency Latest bid End prev year Pct Move Japan yen 114.92 119.01 +3.56 Sing dlr 1.4975 1.5337 +2.42 Taiwan dlr 32.942 32.585 -1.08 Korean won 920.80 929.50 +0.94 Baht 34.22 36.08 +5.44 Peso 45.19 49.03 +8.51 Rupiah 9140.00 8988.00 -1.66 Rupee 39.74 44.26 +11.38 Ringgit 3.4260 3.5270 +2.95 Yuan 7.5099 7.8051 +3.93 REUTERS SG BD0943