* Singapore policy stays tight as Q3 GDP beats f'cast
* Indian rupee down before inflation data
* Won falls on importers, intervention caution
(Adds details, updates prices)
By Jongwoo Cheon
SEOUL, Oct 14 (Reuters) - The Singapore dollar turned higher
on Monday as the central bank kept its tight policy stance with
stronger-than-expected third quarter growth and warned of higher
core inflation, while most emerging Asian currencies eased.
The city-state's currency was quoted at 1.2457 per U.S.
dollar as of 0410 GMT, compared with Friday's close of 1.2460.
The Singapore dollar stood at 1.2474 before the Monetary
Authority of Singapore stuck to its stance of allowing "modest
and gradual" appreciation of the currency as expected.
The local dollar found more support as the trade-dependent
Southeast Asian city-state reported better-than-expected 5.1
percent growth in third quarter gross domestic product from a
year earlier due to continued strength in services.
"We would not describe today's statement as hawkish but
cautiously optimistic and inherently sanguine," said Emmanuel
Ng, a foreign exchange strategist for OCBC Bank in Singapore,
referring to the MAS's policy decision.
"Any risk in April would be towards a tightening, but this
would have to be strongly predicated on a steady and
uninterrupted recovery in global growth prospects in the next
six months," Ng added.
The Singapore dollar is seen having a chart resistance
around 1.2450, but it may head to 1.2423, the high of Sept. 19,
once the level is broken, analysts said.
The next level would be 1.2408, the 76.4 percent Fibonacci
retracement of its depreciation between May and August, they
"Investors are likely to buy the Singapore dollar around
1.2480-1.2490 as there is no rational to sell it," said a
foreign bank trader in Singapore.
"For now, it looks difficult to chase the Singapore dollar
here, given the U.S. debt issue," the trader added.
Most emerging Asian currencies and regional shares fell as a
possible U.S. debt default loomed after the failure of weekend
talks in Washington, though expectations are that a last-minute
compromise will be reached.
The Indian rupee slid before September inflation
data due later in the day.
The Thai baht also slid, tracking weaker local
The won eased on dollar demand from local importers amid
caution over possible intervention by the foreign exchange
authorities to stem its appreciation.
The South Korean currency's downside, however, was limited
as foreign investors extended their buying spree in Seoul's main
exchange to a 32nd consecutive session.
"The won is under some pressure from early dollar demand
from oil importers. But it is hard to find any clear direction
now," said a South Korean bank trader in Seoul.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0410 GMT
Currency Latest bid Previous day Pct Move
*Japan yen 98.27 98.60 +0.34
Sing dlr 1.2457 1.2460 +0.02
Taiwan dlr 29.384 29.490 +0.36
Korean won 1072.90 1071.40 -0.14
Baht 31.32 31.26 -0.21
Peso 43.15 43.14 -0.03
*Rupiah 11360.00 11355.00 -0.04
Rupee 61.27 61.07 -0.32
Ringgit 3.1770 3.1800 +0.09
Yuan 6.1157 6.1206 +0.08
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.27 86.79 -11.68
Sing dlr 1.2457 1.2219 -1.91
Taiwan dlr 29.384 29.136 -0.84
Korean won 1072.90 1070.60 -0.21
Baht 31.32 30.61 -2.27
Peso 43.15 41.05 -4.87
Rupiah 11360.00 9630.00 -15.23
Rupee 61.27 54.99 -10.24
Ringgit 3.1770 3.0580 -3.75
Yuan 6.1157 6.2303 +1.87
* Financial markets in Indonesia and Japan are closed for
(Additional reporting by Yena Park; Editing by)
- Asia News
- Singapore dollar