* Ringgit strongest since 1997, charts point to more gains
* Yuan/ringgit stable in trading debut
* Won strength sparks dlr-buying intervention
* Baht hits fresh 28-month high
By Kevin Yao
SINGAPORE, Aug 19 (Reuters) - The Malaysian ringgit hit a
13-year high on Thursday after the central bank allowed it to be
used for offshore trade settlements, while South Korean
authorities again intervened to cap the buoyant won.
The dollar edged up against the yen <JPY=>, with investors
reluctant to chase the yen higher as they waited to see if the
Bank of Japan or the government will take new steps to rein in
the yen's rise, which is threatening the country's fragile
economic recovery. [ID:nTOE67I04Y]
RINGGIT
The ringgit <MYR=> gained half of a percent to 3.1273 per
dollar, its highest since October 1997, after the central bank
announced late on Wednesday it would allow the use of ringgit for
offshore settlements of trade in goods and services, fueling
speculation it may internationalise the currency.
(To read a story with questions and answers on the move, see
[ID:nSGE67I06T])
China also began directly trading the yuan against the
ringgit on Thursday in its latest step to make the yuan a more
global currency, further supporting the ringgit. [ID:nLDE67H175]
"China's yuan/ringgit quotes in the interbank system added to
the dollar/ringgit downward move," said a trader in Kuala Lumpur.
But traders saw no sign of central bank intervention to slow
ringgit gains, which were largely in line with its regional
peers.
The ringgit is the top performing Asian currency so far this
year, gaining 9.3 percent against the dollar. It has risen 1.8
percent this month alone.
Chart signals, including slow stochastics and MACD, show that
the ringgit is on track to test 3.10 per dollar, a level last hit
in mid-October 1997, after piercing through a key barrier at
3.1280, a high hit in April 2008.
YUAN
The yuan <CNY=CFXS> hovered near 6.7895 per dollar amid signs
that the People's Bank of China hopes to keep the currency
stable, while the yuan's trading debut against the ringgit put it
largely in line with the Malaysian currency's offshore rate.
The yuan was trading within a range of less than 50 pips
around 0.461 against the ringgit in morning trade, dealers said,
compared with the PBOC's mid-point of 0.46204, from where the
yuan can rise or fall 5 percent against the ringgit each day.
"It appears the market has good interest in the new trading
pair," said a dealer at a major European Bank in Shanghai.
The ringgit is the sixth foreign currency to trade in the
domestic market, the China Foreign Exchange Trading System
(CFETS), after the U.S. dollar, Hong Kong dollar, yen, euro and
sterling. The yuan can rise or fall 5 percent from the central
bank's fixing each day.
WON
The South Korean won <KRW=> gained 0.4 percent to 1,169.4 per
dollar, its highest since Aug 10, as foreign investors' local
bond purchases and bids from exporters prompted players to clear
dollar-long positions to stop losses.
It later pulled back to 1,174 as foreign exchange authorities
were again spotted buying dollars to contain the won's advance.
"It looks difficult to chase it further as we saw the
authorities around 1,170," said a local bank dealer.
But another local bank dealer said the won may extend gains
if foreigners kept buying domestic bonds.
By Wednesday, foreign investors had bought a combined net
2.87 trillion won so far this month, data from the Financial
Supervisory Service shows. South Korean shares <.KS11> rose 1
percent as foreign investors bought local stocks.
BAHT
The Thai baht <THB=> hit 31.38 per dollar, a fresh 28-month
high, prompting intervention by Bank of Thailand.
"Capital inflows are picking up speed, going into Thai stocks
and bonds. The whole world is selling dollars and the general
feeling here is BOT will probably let it settle at around this
level," a Bangkok-based dealer said.
Thai stocks <.SETI> climbed 1.3 percent.
The baht has rallied just over 1 percent in the past week and
5.6 percent this year, the third-best Asian performer after the
ringgit and yen.
Change on the day at 0702 GMT
Currency Latest bid Previous day Pct Move
Japan yen 85.84 85.36 -0.56
Sing dlr 1.3523 1.3523 +0.00
Taiwan dlr 31.903 31.966 +0.20
Korean won 1172.15 1174.20 +0.17
Baht 31.58 31.60 +0.06
Peso 44.88 45.10 +0.50
Rupiah 8965.00 8970.00 +0.06
Rupee 46.57 46.56 -0.02
Ringgit 3.1298 3.1430 +0.42
Yuan 6.7887 6.7917 +0.04
Change so far in 2010
Currency Latest bid End prev year Pct Move
Japan yen 85.84 92.90 +8.22
Sing dlr 1.3523 1.4053 +3.92
Taiwan dlr 31.903 32.030 +0.40
Korean won 1172.15 1164.50 -0.65
Baht 31.58 33.32 +5.51
Peso 44.88 46.20 +2.95
Rupiah 8965.00 9420.00 +5.08
Rupee 46.57 46.54 -0.06
Ringgit 3.1298 3.4220 +9.34
Yuan 6.7887 6.8270 +0.56
(Additional reporting by Cheon Jong-woo in SEOUL, Lu Jianxin in
SHANGHAI and Vithoon Amorn in BANGKOK)
(Editing by Kim Coghill)
((kevin.yao@thomsonreuters.com; +65 6870 3841; Reuters
Messaging: kevin.yao.reuters.com@reuters.net ))
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Double click on brackets for following items:
Asian currencies <AFX=> Asian currencies in Asia <AFX=A>
Malaysian ringgit <MYRX=> Indonesian rupiah <IDRX=>
Singapore dollar <SGDX=> Thai baht <THBX=>
Taiwan dollar <TWDX=> Hong Kong dollar <H
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