* Singapore lets currency appreciate more, knocks U.S.
dollar
* Aussie close to U.S. dollar parity, yen at 15-year high
* Stocks, commodities gain as dollar index hits 10-month
low
* Resource-related stocks lead gaining sectors in Asia
By Kevin Plumberg
HONG KONG, Oct 14 (Reuters) - The U.S. dollar tumbled to a
10-month low on Thursday after Singapore unexpectedly tightened
policy to let its currency rise, lifting Asian stocks and
copper to two-year peaks and gold to a record high.
The dollar's decline against a basket of major currencies
<=USD> and to near parity against the Australian dollar <AUD=>
underlined global currency tensions that have sparked a war of
words among policymakers. []
The dollar dropped to a new 15-year low against the yen.
"'Currency war' rhetoric is on the rise ahead of the G20
and becoming increasingly complex. The context for this is
ultra-loose U.S. monetary policy and potential emerging market
asset bubbles," Standard Chartered analysts said in a note.
With the next Federal Reserve policy meeting, at which the
central bank may announce more asset buying with newly printed
dollars, and the next meeting of G20 officials still weeks
away, the well-worn trade of selling dollars to buy emerging
market stocks, commodities and longer-term bonds was still in
play.
Singapore's monetary authority tightened policy, which it
manages through a secret band in which its currency is allowed
to trade. The news prompted the U.S. dollar to fall broadly,
pushing up the euro to an eight-month high around $1.4083
<EUR=>. []
"It is a pre-emptive move," Chua Hak Bin, an economist with
Bank of America Merrill Lynch, said of the Singapore decision.
"Another Fed package would have brought interest rates even
lower and driven more capital flows into Singapore."
The Australian dollar was at US$0.9970 <AUD=>, up 0.7
percent on the day and within sight of parity, something not
seen since 1982.
Australia's currency, which has benefited from having
relatively high yields among G10 currencies, has risen 9.3
percent since September.
The falling U.S. dollar lifted gold prices 0.4 percent on
the day to $1,376.60 an ounce <XAU=>, a record high, and copper
traded on the London Metal Exchange <CMCU3> up more than 1
percent to $8,470.25 a tonne, its highest since July 2008.
Climbing commodity prices have been a boon for
resource-related shares and the materials sector gave the
biggest lift to MSCI's index of Asia Pacific stocks outside
Japan <.MIAPJ0000PUS>.
It was up 1 percent to the highest since June 2008, having
risen 14 percent since September.
Japan's Nikkei share average led gainers in Asia, up 2
percent <>. Resource stocks led the rise, although
analysts said the yen's strength would limit the market's
upside potential.
(Editing by Neil Fullick)
