Asian currencies test long term highs as liquidity dries<\/p>\n
HONG KONG (Dow Jones): Strong economic data, robust stock
\nmarket performances and the Japanese yen's run-up against the
\nU.S. dollar helped lift Asian regional currencies during local
\ntrading hours Monday.<\/p>\n
Positive sentiment propelled the Singapore dollar to its
\nhighest level since January, while the Thai baht climbed to a
\ntwo-month high. The Indonesian rupiah also rose.<\/p>\n
Hopes that the Korean government will successfully avert a
\nsystemic crisis triggered by the collapse of the Daewoo group
\nlifted the won to a six-week high. The New Taiwan dollar
\ncontinued to inch higher, pushing doggedly upwards toward levels
\nunseen in more than two years.<\/p>\n
Despite the strong performance of Asian currencies in recent
\nweeks, activity levels in regional foreign exchange markets are
\nsuffering as liquidity dries in the approach to the end of the
\nyear.<\/p>\n
Dealers in Singapore complained that interest in trading in
\nSoutheast Asian markets was subdued, even though both the
\nSingapore dollar and the baht hit medium-term highs.<\/p>\n
Traders said sales of the U.S. dollar executed by local banks
\nwere behind the U.S. currency's fall through the S$1.6600 level
\nin morning dealing.<\/p>\n
However, major technical support at S$1.6580 held firm, and
\nthe U.S. currency rallied above S$1.6600 again in late trading as
\nmarket dealers, nervous of provoking U.S. dollar-supportive
\nintervention by the local monetary authority, covered their
\npositions.<\/p>\n
\"It wasn't the central bank buying (U.S. dollars), it was just
\nnormal market trading,\" said one dealer at a U.S. bank in
\nSingapore, in response to rumors that the Monetary Authority had
\nbeen in the market buying the U.S. currency at the day's low.<\/p>\n
Late in Asian trading the U.S. dollar was quoted at S$1.6611,
\ndown from S$1.6664 toward the end of interbank dealing Friday.<\/p>\n
Liquidity in the baht spot market was also thin. Dealers
\nreported moderate sales of the U.S. dollar by bank traders
\nattempting to trigger stop-loss sales orders for the U.S.
\ncurrency believed to be positioned around 38.50 baht.<\/p>\n
Their offers were insufficient to overcome dollar-buying
\ninterest from Thai corporate customers, whose bids supported the
\nU.S. currency at its intraday low at 38.5500 baht.<\/p>\n
Late in Asian dealing the dollar was still being offered at
\n38.5500 baht, down from 38.7150 baht late Friday.<\/p>\n
Market optimism that multilateral lenders will soon resume
\npayments to Indonesia following the visit to the country this
\nweek of a team of senior International Monetary Fund officials
\nboosted the rupiah.<\/p>\n
Early trading saw the U.S. dollar sold down as low as 6,730
\nrupiah. The selling pressure failed to force the dollar below the
\nfour-month low of Rp 6,700 set following last months elections,
\nhowever, and the U.S. currency recovered slightly during
\nafternoon dealing.<\/p>\n
Toward the end of local interbank trading, the dollar was
\nquoted at Rp 6,762, down from Rp 6,902 late Friday.<\/p>\n
With markets in Manila closed for the All Saints Day holiday,
\nthere was no trading Monday in the Philippine peso.<\/p>\n
As fears of a liquidity crisis receded, and a series of
\neconomic data releases confirmed the strength of Korea's rebound,
\nwon purchases pushed the dollar to a six-week low at 1,194.50
\nwon.<\/p>\n
At that level, however, the state-controlled Korea Export-
\nImport Bank and Korea Development Bank stepped into the market,
\nbuying dollars to check any further won appreciation.<\/p>\n
By the end of trading the bank's action had lifted the dollar
\nto 1,195.50 won, above its earlier low, but still down steeply
\nfrom 1,200.00 won at the close of Friday's session.<\/p>\n
The New Taiwan dollar continued its slow march higher Monday.
\nIntraday trading saw the U.S. dollar sold as low as NT$31.726,
\nits lowest level since early December 1997. At the close of
\ndomestic session, the U.S. currency was at NT$31.731, down from
\nNT$31.736 Saturday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-test-long-term-highs-as-liquidity-dries-1447893297",
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