Asian currencies mostly higher late, U.S. rate cut foreseen<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies were stronger
\nagainst the dollar Wednesday, helped by expectations of another
\ninterest rate cut in the U.S.<\/p>\n
With the exception of the Indonesian rupiah, all regional
\ncurrencies strengthened Wednesday.<\/p>\n
Market participants widely expect Federal Reserve policymakers
\nwill lower short-term interest rates by 50 basis points to 5.5
\npercent Wednesday in an effort to reverse the U.S. economic
\ndownturn.<\/p>\n
While lower U.S. interest rates will help Asian markets in the
\nnear-term, analysts caution that continued deterioration of the
\nU.S. economy will weigh on Asian economies.<\/p>\n
The region, which relies heavily on exports to the U.S. to
\ngenerate economic growth, has already begun to feel the effects
\nof the U.S. slowdown. A full-blown recession in the U.S. would
\nhave an even bigger impact on Asian economies and make it more
\ndifficult for them to attract much-needed foreign investment.<\/p>\n
In addition, political uncertainty continues to influence
\ninvestors' views about Asia, especially in Indonesia where
\ninvestigators are looking into charges of corruption against
\nPresident Abdurrahman Wahid.<\/p>\n
\"No one is in a hurry to be very bullish about Asian
\ncurrencies for the medium term,\" DBS Bank said in a research
\nreport. \"Asian economies will not be spared if the U.S. economy
\nsuffers more knocks.\"<\/p>\n
The Indonesian rupiah closed marginally lower Wednesday on
\ncorporate dollar demand sparked by concerns over expected massive
\nantigovernment demonstrations Thursday.<\/p>\n
Dealers said late dollar selling by several state banks lifted
\nthe rupiah from its intraday low of Rp 9,455.<\/p>\n
The dollar closed at Rp 9,447, up slightly from Rp 9,435 at
\nTuesday's close.<\/p>\n
\"The market remained nervous over possible riots Thursday,\"
\nsaid a trader with a Japanese bank.<\/p>\n
A parliamentary committee report said President Abdurrahman
\nWahid knowingly broke the law to raise money for the humanitarian
\ncrisis in the troubled province of Aceh.<\/p>\n
The 500-member Parliament will give its official response to
\nthe report Thursday. A decision to accept the report's findings
\nand issue a warning letter would mark the first step toward
\nimpeachment proceedings against Wahid.<\/p>\n
Prospects for lower U.S. rates along with rising share prices
\nboosted the South Korean won.<\/p>\n
The dollar finished at 1,259.0 won, down from 1,265 won
\nTuesday.<\/p>\n
The dollar had risen as high as 1,264.5 won in intraday
\ntrading, but was knocked back by the surge in local stocks,
\ndealers said. The country's main index rose 4.5 percent on heavy
\nforeign buying on both futures and cash markets.<\/p>\n
The Philippine peso shrugged off news that former President
\nJoseph Estrada will question the legality of his ouster from
\noffice.<\/p>\n
Estrada said Wednesday he remains the \"duly elected president\"
\nof the Philippines and President Gloria Macapagal-Arroyo is \"just
\nan acting president.\"<\/p>\n
The peso gained on month-end position squaring by banks and
\nlack of commercial dollar demand, dealers said. The dollar closed
\nat 48.975 pesos, down from 49.600 pesos Tuesday.<\/p>\n
The Thai baht got a boost from further signs that the
\ncountry's drawn-out election process neared resolution Wednesday.<\/p>\n
Thaksin Shinawatra, whose Thai Rak Thai Party won a landslide
\nvictory in the Jan. 6 general election, invited the small Chart
\nThai Party to join him in a three-party coalition along with the
\nNew Aspiration Party. Together the three parties would control
\nmore than 320 seats in the 500 seat lower house of parliament.<\/p>\n
Late in Asian trading, the dollar was quoted at 42.505 baht,
\ndown from 42.655 baht late Tuesday.<\/p>\n
The U.S. dollar closed at NT$32.397, down from NT$32.435
\nTuesday. It was the New Taiwan dollar's highest close since
\nNT$32.278 on Nov. 18.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-mostly-higher-late-us-rate-cut-foreseen-1447893297",
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