Asian currencies battered as yen takes dive<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies were
\nbattered during Asian trading on Monday, after the Japanese yen
\ndropped to its lowest level since the beginning of December.<\/p>\n
In Southeast Asia, the Thai baht, the Singapore dollar and the
\nPhilippine peso all ended the day lower, while in North Asian
\ntrading only heavy central bank intervention saved the new Taiwan
\ndollar from following the South Korean won down to fresh lows for
\nthe year.<\/p>\n
With many market participants now confidently predicting that
\nthe yen is destined to weaken further as the U.S. dollar rises
\ntoward Y125, more falls are forecast for Asia's regional
\ncurrencies.<\/p>\n
\"We believe the yen will be weak at least into March, and if
\nthat is the case, it is certainly true that we will see the
\nfloating currencies in Asia weaken,\" said Vincent Low, foreign
\nexchange and interest rate strategist at Merrill Lynch in
\nSingapore.<\/p>\n
Easing Hong Kong dollar interest rates, however, prompted some
\nplayers to step into the market to sell the local currency short,
\nwith traders reporting that U.S. and U.K. banks were heavy buyers
\nof U.S. dollars.<\/p>\n
Activity was also heavier than normal in the Thai baht market,
\nwith Hong Kong-based participants seen by traders re-establishing
\nshort positions in the local currency, in response to the yen's
\nfall.<\/p>\n
Late in Asian trading the U.S. dollar was quoted at 37.725
\nbaht, compared with 37.5250 baht toward the end of Asian dealing
\nFriday. Should the U.S. dollar successfully test the Y125 level,
\nsay many dealers, the U.S. currency may rise to 39.00 baht or
\neven 40.00 baht. Late Monday, the yen was around Y122.25 against
\nthe dollar.<\/p>\n
The U.S. currency is also seen rising further against the
\nSingapore dollar, after breaking through key resistance at
\nS$1.7100 early Monday.<\/p>\n
Low at Merrill Lynch believes the U.S. currency is likely to
\nhit S$1.73 in the short term.<\/p>\n
In a truncated session on the Philippine Dealing System the
\nU.S. dollar pushed higher against the peso reflecting its
\nstrength against the yen.<\/p>\n
At the close of domestic trading the U.S. currency was being
\nquoted at PHP39.26, up from PHP38.88 at Friday's close.<\/p>\n
Against the Indonesian rupiah, the U.S. dollar was largely
\nstatic, ending the Asian day at 8,905 rupiah, compared with 8,885
\nrupiah late Friday.<\/p>\n
Against the won, the dollar ended at 1,216.1 won, up from
\n1,204 won at the end of domestic dealing Friday. With the U.S.
\ncurrency widely thought likely to break Y125, the dollar is seen
\nappreciating further against the won to test an exchange rate of
\n1,250 won.<\/p>\n
Although the New Taiwan dollar opened weaker in line with the
\nyen and other Asian currencies, aggressive intervention by the
\nTaiwanese central bank, which was estimated to have sold around
\n$300 million, succeeded in pushing the local currency up to end
\nthe day higher.<\/p>\n
After climbing to an intraday high of NT$33.45, its highest
\nlevel since early October, the U.S. dollar was forced down again
\nto finish of local trading NT$33.102, compared with NT$33.257 at
\nthe previous close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-battered-as-yen-takes-dive-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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