Asian currencies end mixed as RI scandal roils markets<\/p>\n
SINGAPORE (Dow Jones): Continued yen strength offset market
\nuncertainty created by Indonesia's ongoing bank scandal and
\ndomestic reaction to the decision to allow international
\npeacekeepers into East Timor, leaving the U.S. dollar mixed
\nagainst the region's currencies late Tuesday.<\/p>\n
The uncertainty pushed the Thai baht to an 11-month low
\nagainst the U.S. dollar in early trading, although the yen's
\ncontinued strength allowed the baht to claw back some of its
\nlosses. The Singapore dollar moved higher against the U.S.
\ndollar, while increasing fears of inflation put downward pressure
\non the Philippine peso.<\/p>\n
The Indonesian rupiah fell only slightly against the U.S.
\ndollar in an extremely thin market, even after World Bank
\nDirector Mark Baird said the scandal involving an illegal
\ntransfer of funds from Bank Bali is probably not an isolated
\nincident.<\/p>\n
In North Asia, the New Taiwan dollar strengthened slightly,
\nwhile the Korean won weakened, despite forecasts that economic
\ngrowth could hit 8 percent in 1999.<\/p>\n
Economists expect a strengthening yen to take the pressure off
\ncentral banks in coming weeks and months. Philip Wee, treasury
\neconomist at Standard Chartered Bank in Singapore, said regional
\ncurrencies can also be expected to appreciate somewhat as the
\nU.S. dollar weakens.<\/p>\n
"The U.S. dollar is at a critical point against the yen; the
\nmarket is expecting Y100, but no one knows how fast, and Bank of
\nJapan intervention is also a factor," Wee said.<\/p>\n
At 0820 GMT, the U.S. dollar was trading at Y106.51, well down
\nfrom Y107.25 in late Asian trading Thursday.<\/p>\n
The U.S. dollar was also trading at S$1.6878, down a touch
\nfrom $1.6890 late Thursday. Traders said there were signs the
\nMonetary Authority of Singapore was active in the market, trying
\nto curtail U.S. dollar-selling. Despite MAS efforts, the market
\nis still seeing bids starting at S$1.6840 and traders expect the
\nU.S. dollar to fall further during European and U.S. trading
\nhours.<\/p>\n
On the Philippine Dealing System, the U.S. dollar was trading
\nat 39.90 pesos in late Asian trading, up from 39.86 pesos
\nThursday.<\/p>\n
Economists are beginning to voice fears the Philippines is
\nwell on the way to overshooting its budget deficit target, which
\ncould undermine confidence in the government.<\/p>\n
Data released Tuesday showed the government recorded a budget
\ndeficit of 71.95 billion pesos in the first eight months of 1999.
\nThat already exceeds the full-year target of 68.4 billion pesos.<\/p>\n
The U.S. dollar was also trading at Rp 7,950, up from Rp 7,850
\nin late Asian trading Monday, although the U.S. dollar did climb
\nas high as Rp 8,190 in intraday trading. Traders complained the
\nmarket is extremely thin with $1 million and $2 million orders
\ngoing unfilled; the attendant volatility has kept most investors
\non the sidelines.<\/p>\n
In other markets, the U.S. dollar climbed a touch higher
\nagainst the Korean won, trading at 1192.1 won, up from 1191.8 won
\nlate Monday. Markets remained skeptical to news Monday that the
\ngovernment is close to finalizing a deal for Korea First Bank
\nwith U.S. investor Newbridge Capital Ltd., a move that, if true,
\nwill buoy foreign investor confidence.<\/p>\n
The U.S. dollar, trading at NT$31.78 late Monday, fell to
\nNT$31.765 Tuesday - a 21-month low against the new Taiwan dollar.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-end-mixed-as-ri-scandal-roils-markets-1447893297",
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"sponsor": "Okusi Associates",
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