Asian currencies stagnant, rupiah comes down from high<\/p>\n
HONG KONG (Dow Jones): Asian currencies barely moved on
\nWednesday, as trading in regional markets all but ground to a
\nhalt ahead of the release later in the day of U.S. inflation
\nfigures.<\/p>\n
Taking their cue from the major foreign exchange markets,
\ndealers shied away from taking positions in the regional
\ncurrencies, lest they be caught wrong-footed by any surprises in
\nthe U.S. data.<\/p>\n
What little activity there was consisted largely of regional
\ncurrency buying by foreign equity market investors, offset by
\ndollar purchases from bank traders looking to square off their
\nshort positions in the U.S. currency.<\/p>\n
Rupiah-supportive comments from Indonesia's senior economics
\nminister, Ginandjar Kartasasmita, and Bank Indonesia governor
\nSjahril Sabirin, had little discernible impact on the exchange
\nrate of the Indonesian currency.<\/p>\n
Both men said the rupiah has the potential to strengthen
\nfurther, with the dollar possibly slipping below the Rp 7,000
\nmark.<\/p>\n
But after dropping to a fresh eight-month low at levels below
\nRp 7,200 in thin overnight dealing, the U.S. dollar recovered
\nslightly during Asian hours Wednesday, rising to Rp 7,295 towards
\nthe end of local trading, up from Rp 7,252 late the previous day.<\/p>\n
While traders agreed that the Indonesian currency has room to
\nstrengthen further in the near term, they said that dollar bids
\nat Rp 7,200 from Hong Kong-based banks looking to book profits on
\nshort positions in the U.S. currency supported the dollar
\nWednesday.<\/p>\n
Although profit-taking could drive the U.S. currency higher to
\naround Rp 7,500, offers at that level are likely to push the U.S.
\ncurrency lower once again, said one U.S. bank trader in
\nSingapore.<\/p>\n
Elsewhere in the region, both the Singapore dollar and the
\nThai baht ended Asian trading hours unchanged on the day.<\/p>\n
Bids placed by local banks at S$1.7090 supported the U.S.
\ncurrency against the Singapore dollar, while offers from European
\nbanks, placed on behalf of equity investors, according to
\ntraders, capped the market at S$1.7115.<\/p>\n
Late in Asian hours, the U.S. dollar was quoted at S$1.7095,
\nunchanged from the previous day.<\/p>\n
Against the baht, the U.S. dollar ended Asian trading flat at
\n36.9600 baht, having traded within a 36.95 baht to 36.97 band the
\nentire day.<\/p>\n
The Philippine peso nudged slightly higher on the day. At the
\nlocal close, the U.S. dollar was quoted at 37.790 pesos, down
\nslightly from 37.820 pesos at Tuesday's close.<\/p>\n
In North Asia, both the South Korean won and the New Taiwan
\ndollar continued to edge higher, supported by trade flows and
\npositive investor sentiment.<\/p>\n
Against the won, the U.S. dollar finished at 1,164.30 won,
\ndown from 1,165.90 won at the previous close, despite steady
\ngovernment-directed dollar buying by state-owned banks.<\/p>\n
Against the Taiwanese currency, the U.S. dollar ended local
\ntrading at a fresh four-month low of NT$32.374, down from
\nNT$32.384 Tuesday.<\/p>\n
In London, the euro single currency fell back below 1.04
\ndollars here early on Wednesday as the market nervously awaited
\npublication of U.S. inflation figures later in the day.<\/p>\n
The euro fell against the dollar in anticipation of strong
\neconomic data from the United States.<\/p>\n
An analyst at ABN Amro bank, Jesper Dannesboe, said: \"The
\nmarket is betting that US data will be on the strong side in the
\nnext couple of weeks.\"<\/p>\n
The euro was being traded at 1.0387 dollars 1.0431, 125.20 yen
\n(125.75), 0.6535 pounds (0.6510), 1.5955 Swiss francs (1.5966).<\/p>\n
The dollar was being traded at 120.43 yen (120.52), 1.5354
\nSwiss francs (1.5299).<\/p>\n
Sterling was being traded at 1.5899 dollars (1.5965), 191.52
\nyen (192.53) and 2.4424 Swiss francs (2.4436).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-stagnant-rupiah-comes-down-from-high-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}