Asian currencies mixed, North Asia tracks lower with yen<\/p>\n
Dow Jones, Singapore<\/p>\n
Weakness in the yen Thursday on heightened anticipation the Bank
\nof Japan will ease monetary policy even further pushed North
\nAsian currencies lower.<\/p>\n
Currencies in Southeast Asia, however, rose slightly on
\nincreased optimism about a U.S. recovery in the second half of
\nthis year, which has prompted foreign fund managers to buy
\nregional equities in recent weeks.<\/p>\n
While the yen remains a drag on the won and New Taiwan dollar
\n- the currencies of nations that compete with Japan in export
\nmarkets including electronics, technology and autos - its
\ninfluence on Asian currencies is diminishing.<\/p>\n
Most analysts expect the yen will 'decouple' from other Asian
\ncurrencies as Japanese economic prospects diverge markedly from
\nthe rest of the region, which largely appears poised to benefit
\nfrom a U.S.-led rebound in global demand.<\/p>\n
Nevertheless, the scale of yen losses early Thursday was
\nsufficient to dent sentiment toward the South Korean and
\nTaiwanese units for most of their respective trading sessions.<\/p>\n
The yen dropped as low as 134.18 against the U.S. dollar from
\n133.46 yen in early Asian trade, before recovering late in the
\nday. At 1100 GMT (5 p.m. Jakarta time) the dollar was at 133.72
\nyen.<\/p>\n
The only reason the yen didn't fall further during the session
\nto the detriment of the other North Asia units is because of a
\nbelief that the Ministry of Finance doesn't want to see the yen
\ndrop too sharply ahead of a two-day meeting of finance ministers
\nfrom the Group of Seven industrial nations starting Friday in
\nOttawa.<\/p>\n
As it stands, Finance Minister Masajuro Shiokawa said he
\nexpects a hot reception from other participants over the
\ngovernment's handling of the economy. If the yen was to slump to
\nfresh three-year lows during the summit it would be an
\nembarrassment for the Finance Ministry, so traders expect it will
\nmake sure any weakness in the interim is gradual.<\/p>\n
This helped the yen to recover late in the session.<\/p>\n
But this came too late for the New Taiwan dollar, which ended
\ntrade in Taipei at NT$35.029 against the U.S. dollar, compared
\nwith NT$35.016 Wednesday.<\/p>\n
In South Korea, the central bank's decision to keep its key
\ncall rate at 4 percent went almost unacknowledged in the market,
\nas it was widely expected, dealers said.<\/p>\n
The dollar closed at 1,318.2 won, up from Wednesday's close of
\n1,316.7 won.<\/p>\n
In Southeast Asia, the dollar closed at Rp 10,292, down from
\nits close Wednesday of Rp 10,315.<\/p>\n
The dollar late in the day was at 43.875 baht, down from
\n43.965 baht a day earlier as foreign investor buying of local
\nstocks buoyed sentiment toward the currency.<\/p>\n
Elsewhere, the U.S. dollar was at S$1.8326, down from S$1.8336
\nlate Wednesday, and ended Manila trade at 51.185, peso down from
\n51.203 peso Wednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-mixed-north-asia-tracks-lower-with-yen-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}