Asian currencies down on new woes<\/p>\n
SINGAPORE (Dow Jones): A slew of negative political and
\neconomic news pushed most Asian currencies sharply lower
\nWednesday, with the Indonesian rupiah taking the biggest tumble.<\/p>\n
An overnight bomb blast at the Indonesian attorney general's
\noffice, along with continuing political turmoil affecting
\nPresident Abdurrahman Wahid's government, triggered rupiah
\nselling that pushed the currency to its lowest level in nearly 16
\nmonths.<\/p>\n
Near the end of Asian trading Wednesday, the dollar was quoted
\nat Rp 9,395, up from Rp 8,960 Tuesday.<\/p>\n
In the Philippines, ongoing concerns over low local interest
\nrates, political unrest in the southern island of Mindanao, and
\nfears that the economy is slowing, kept sentiment firmly against
\nthe peso.<\/p>\n
The dollar closed at a 21-month high of 43.690 pesos, up from
\n43.535 pesos the previous day. The trading session was
\nabbreviated because of heavy rains that caused flooding in some
\nparts of Manila.<\/p>\n
With the dollar climbing as high as 43.695 pesos in intraday
\ntrading, dealers said they expected it to breach the 43.700 pesos
\nin the next trading session.<\/p>\n
Falling regional currencies also pulled the Singapore dollar
\nlower. Late Wednesday, the U.S. dollar was quoted at S$1.7370, up
\nfrom S$1.7327 late Tuesday in Asia.<\/p>\n
\"The rupiah, baht and peso are all affecting the Singapore
\ndollar even though its fundamentals are good,\" said Steven Brice,
\ncurrency strategist for Standard Chartered Bank in Singapore.<\/p>\n
While the Singapore dollar approached lows it reached last
\nweek, dealers said it was unlikely the Monetary Authority of
\nSingapore would intervene to support the local currency, with
\nsentiment so strongly in favor of the U.S. dollar.<\/p>\n
\"It (intervention) would be like standing in front of a
\ntruck,\" an Asian bank dealer in Singapore said.<\/p>\n
The South Korean won ended lower Wednesday amid worries about
\nan upcoming strike at local banks and continued weakness in
\nSoutheast Asian currencies.<\/p>\n
The dollar finished at 1,117.20 won, up from Tuesday's close
\nat 1,115.30 won.<\/p>\n
\"I don't see the strike as catastrophic for the won,\" Brice
\nsaid.<\/p>\n
\"It is a negative because it could slow banking reform. And
\nthat is clearly something that is undermining sentiment
\ndomestically,\" he said.<\/p>\n
Employees at local banks and bank-related financial
\ninstitutions plan to go on strike on July 11 to protest expected
\nmergers in the banking industry, which they fear will lead to
\nlarge-scale layoffs.<\/p>\n
The Thai baht tumbled to a near nine-month low on the heels of
\nthe plummeting rupiah and concerns over a threatened walkout in
\nparliament.<\/p>\n
Late Wednesday, the dollar was quoted at 39.515 baht, up from
\n39.335 baht late Tuesday.<\/p>\n
The New Taiwan dollar was the lone Asian currency to finish
\nhigher against the U.S. dollar, lifted by the rally in the stock
\nmarket, foreign exchange dealers said.<\/p>\n
The U.S. dollar closed at NT$30.814, down from NT$30.822 late
\nTuesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-down-on-new-woes-1447893297",
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