Asian currencies end mixed<\/p>\n
HONG KONG (Dow Jones): A day of directionless trading left
\nAsian currencies mixed at the end of local trading hours
\nWednesday.<\/p>\n
Long anticipated, Tuesday's 25-basis-point increase in U.S.
\ninterest rates had little impact on regional markets.<\/p>\n
While the Thai baht and the Indonesian rupiah both rose, the
\nSingapore dollar and the Philippine peso fell back against the
\nU.S. currency.<\/p>\n
In Northeast Asia, both the South Korean won and the New
\nTaiwan dollar edged higher.<\/p>\n
Despite the baht's rise, dealers said the Thai currency is set
\nto remain firmly range-bound.<\/p>\n
Large dollar bids placed by a major Thai corporation have
\nsupported the U.S. currency above 38.20 baht for the last week,
\nthey noted, while offers from U.S. banks are capping the market
\nat 38.40 baht.<\/p>\n
A pledge from the Bank of Thailand's assistant governor for
\nmonetary policy to reduce domestic interest rates further despite
\nthe U.S. rate hike had little impact on trading.<\/p>\n
Late Wednesday in Asia the dollar was quoted against the baht
\nat 38.3450 baht, down from 38.3900 baht the previous day.<\/p>\n
The U.S. dollar also ended lower against the rupiah, but
\ndealers hesitated to read much significance into the Indonesian
\ncurrency's rise.<\/p>\n
Although the scandal surrounding the irregular transfer of $80
\nmillion from Bank Bali to a company with close links to
\nIndonesia's ruling Golkar party has severely damaged investor
\nconfidence in the country and the currency, few market players
\nare actively selling the rupiah short.<\/p>\n
Instead the majority have retreated to the sidelines and are
\ncontent to remain neutral on the currency for the time being,
\nsaid traders.<\/p>\n
Late Wednesday the U.S dollar was being quoted at Rp 7,590,
\ndown from Rp 7,752 toward the end of Tuesday's trading.<\/p>\n
In contrast the Singapore dollar weakened Wednesday, falling
\nto its lowest level in a month on U.S. dollar purchases by
\ninterbank traders responding to a rally in the U.S. currency
\nagainst the yen.<\/p>\n
While the market remains upbeat on Singapore's economic
\noutlook, some traders suggested that the Singapore dollar, with
\nshort-term interest rates of just over 2 percent, remains an
\nattractive funding currency for carry trades.<\/p>\n
Late in Asian trading, the U.S. dollar was quoted at S$1.6925,
\nup from S$1.6892 the day before.<\/p>\n
The Philippine peso also closed lower Wednesday, after hitting
\na six-month low in intraday trading as dealers continued to
\nrespond to the peso's shrinking yield spread over the dollar by
\nbidding up the U.S. currency.<\/p>\n
The peso's fall, which saw the dollar rise to within a whisker
\nof the psychologically significant 40.00 mark, prompted central
\nbank Governor Raphael Buenaventura to pledge to keep overnight
\ninterest rates steady this week, rather than cutting them.<\/p>\n
Although Buenaventura ruled out a rate increase, he suggested
\nthat the central bank may raise banks' reserve requirements in
\norder to mop up liquidity and support the peso.<\/p>\n
At the local close the U.S. currency was quoted at 39.780
\npesos, up from 39.750 pesos at the end of Tuesday's session.<\/p>\n
In North Asia, the Korean won closed higher, lifted primarily
\nby trade flows as Korean exporters repatriated revenues ahead of
\nthe approaching month's end.<\/p>\n
As local trading finished, the U.S. currency was quoted at
\n1,193.40 won, down from 1,199.00 won at Tuesday's close.<\/p>\n
Capital inflows continued to support the new Taiwan dollar,
\nforcing the U.S. currency down to close at NT$31.867, from
\nNT$31.882 the day before.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-end-mixed-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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