Asian currencies lifted off lows by position squaring<\/p>\n
HONG KONG (Dow Jones): Asian currencies rallied Friday, as the
\nliquidation of long dollar positions ahead of the weekend
\nrelieved the pressure on regional markets.<\/p>\n
Despite the recovery, market players remained leery of Asian
\ncurrencies in general, predicting that the dollar would remain
\nstrong into the coming week.<\/p>\n
\"I would be cautious about putting on any new long Asian
\ncurrency trades at this time,\" said Vincent Low, foreign exchange
\nand interest rate strategist at Merrill Lynch in Singapore.<\/p>\n
With the extent of future U.S. interest rate increases still
\nuncertain, investors are showing an increased aversion to risk
\nand are scaling back their exposure to Asian markets, dragging
\nregional currencies off their recent highs, said Low.<\/p>\n
Although the Asian recovery story remains firmly in place,
\nwith regional economies boasting strong growth rates and handsome
\ntrade surpluses, money managers will prefer to wait for a few
\nmore months until they are satisfied the U.S. Federal Reserve has
\ncompleted its current round of tightening before rebuilding their
\nallocations to Asia, he explained.<\/p>\n
While the short- to medium-term outlook for Asian markets is
\nclouded, Asian trading Friday did see regional currencies
\nstrengthen from their earlier lows.<\/p>\n
As the yen edged a touch higher, dealers fretted that perhaps
\nthe dollar had become overbought and sold the U.S. currency to
\nreduce the risk on their books going into the weekend.<\/p>\n
In North Asia the won regained most of the previous day's
\nlosses in heavy trading. Early trading saw the South Korean
\ncurrency touch a fresh six-week low, when the dollar briefly rose
\nto hit 1,145.00 won.<\/p>\n
But by the end of Seoul dealings, dollar sales had pushed the
\nU.S. currency back down to 1,136.60 won, well below Thursday's
\nclosing level of 1,140.50 won.<\/p>\n
The New Taiwan dollar also ended higher Friday, thanks partly
\nto intervention by the central bank, which is anxious to support
\nthe local currency during the current upsurge in political
\ntensions between Taipei and Beijing.<\/p>\n
At the close, the U.S. currency was trading against the New
\nTaiwan dollar at NT$30.764, compared with NT$30.785 the previous
\nday.<\/p>\n
In Southeast Asia the Singapore dollar found support from pre-
\nweekend position squaring.<\/p>\n
With Singapore's recovery now well on course, analysts
\nexpected Friday's budget to focus on promoting economic growth
\nover the longer term and predicted the budget speech, delivered
\nafter the close of local interbank dealing, would contain little
\nto influence the exchange rate.<\/p>\n
Toward the end of Asian trading, the U.S. currency was quoted
\nagainst the Singapore dollar at S$1.7099, down from S$1.7134 the
\nday before.<\/p>\n
But with firm support seen at S$1.7080, dealers said the U.S.
\ndollar is likely to test up toward the S$1.7150 level in the near
\nterm.<\/p>\n
The Thai baht also made gains against the U.S. dollar,
\nassisted by comments from the Thai finance minister indicating
\nlevels of nonperforming loans in the domestic banking system had
\nfallen below the 30 percent level, well down from their 47
\npercent peak last year.<\/p>\n
Late in Asia, the dollar was quoted at 37.980 baht, down from
\n37.190 baht Thursday. One trader forecast a short-term trading
\nrange of 37.800 baht-38.200 baht.<\/p>\n
The rupiah ended slightly higher as market fears over the
\nhealth of Indonesian President Abdurrahman Wahid calmed.<\/p>\n
After hitting a high of Rp 7,535, the dollar eased back to end
\nAsian trading at Rp 7,455, below Rp 7,485 late Thursday.<\/p>\n
The Philippine Dealing System was closed Friday for a public
\nholiday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-lifted-off-lows-by-position-squaring-1447893297",
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