Asian currencies close weaker<\/p>\n
SINGAPORE (AFP): Asian currencies closed lower in range-bound
\ntrade on Monday as the yen eased against the US dollar, with the
\nPhilippine peso and Thai baht pulled down by domestic factors,
\ndealers said.<\/p>\n
\"The regionals are moving very much sideways,\" said a dealer
\nwith a European bank. \"They've been at these levels most of the
\nday.\"<\/p>\n
The Singapore dollar fell to 1.6890 from its close Friday of
\n1.6877 against the American dollar, the Thai baht to 36.92 from
\n36.71,the South Korean won to 1,175 from 1,170, and the Taiwan
\ndollar to 32.265 from 32.239.<\/p>\n
The Philippine peso fell to 39.30 from 38.675 on domestic
\nfactors.<\/p>\n
The dealer said the Philippine central bank was believed to be
\nbuying up dollars to cover maturing bonds, while the Thai baht
\nwas affected by the yen as well as negative comments by rating
\nagencies on Thailand.<\/p>\n
Analysts here have ruled out a pre-Lunar New Year rally in
\nregional markets as the global financial system is still in
\nturmoil.<\/p>\n
The Lunar New Year falls on February 16 this year. Before Asia
\nplunged into turmoil with rapid currency declines in mid-1997,
\nmarkets had usually been robust in the run-up to the festival,
\nthe main holiday season for many Asian nations.<\/p>\n
The yen closed Asian trading here higher around 113.73, from
\nits opening level of 113.05 and its New York finish last Friday
\nof 113.30.<\/p>\n
Dealers in Tokyo said the dollar, which had fallen on a slump
\nin Japanese government bonds last week, came back following a
\nrally in the bond market.<\/p>\n
\"Investors bought the yen when yields shot up last week, and
\nnow they started selling it amid falling yields,\" said Noriyoshi
\nTsunoda, a chief dealer at Fuji Bank Ltd.<\/p>\n
The yield moves inversely to price but higher yields lead
\ninvestors to buy the Japanese currency necessary to purchase the
\nbond.<\/p>\n
In London, the euro hit a new low against the dollar early
\nMonday in London ahead of what were expected to be poor German
\nindustrial output figures, while the dollar regained ground
\nagainst the yen.<\/p>\n
The euro fell to 1.1228 dollars from 1.1281 dollars late
\nFriday, the lowest level since its launch in 10 European Union
\ncountries at the start of this year, before recovering to 1.1235
\ndollars.<\/p>\n
Against sterling, the euro fell to 0.6884 pounds (0.6891).
\nThe dollar rose to 113.69 yen from 113.49 yen earlier in Tokyo
\nand 113.02 yen late Friday in London.<\/p>\n
The euro's weakness was prompted by the expectations of poor
\nGerman figures, which follow a series of strong U.S. indicators.<\/p>\n
\"The German industrial production figures should be pointing
\nto recession,\" said Robert Hayward, economist at the Bank of
\nAmerica. \"There's a huge contrast between the U.S. and Euroland's
\neconomies.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-close-weaker-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}