Asian monies down, dollar stable<\/p>\n
Dow Jones, Singapore<\/p>\n
The dollar edged higher against most Asian currencies Monday,
\nhelped by its relatively stable performance against the yen.<\/p>\n
The New Taiwan dollar, Singapore dollar and Philippine peso
\nweakened, while the Indonesian rupiah was unchanged.<\/p>\n
The South Korean won and Thai baht were not actively traded
\nbecause markets in Seoul and Bangkok were closed for public
\nholidays.<\/p>\n
The rangebound trading of the dollar against the yen set a
\nsubdued tone for its trading against other Asian currencies,
\nanalysts said.<\/p>\n
Concerns that the Japanese government might intervene in
\nforeign exchange markets to prop up the dollar against the yen
\nhelped keep a floor under the U.S. currency.<\/p>\n
The Bank of Japan has bought tens of billions worth of dollars
\nin recent weeks in an attempt to cap the yen's strength.
\nAuthorities are worried a rapid appreciation of the yen will hurt
\nthe competitiveness of Japanese exporters in global markets and
\nset back the country's economic recovery.<\/p>\n
The fact that the Bank of Japan's intervention on Friday was
\ndone through the U.S. Federal Reserve and the European Central
\nBank suggests that Japanese authorities have the approval of
\ntheir U.S. and European counterparts, analysts said.<\/p>\n
Bank of America noted that the timing of the intervention --
\nright after the conclusion of the Group of Eight summit -- \"can
\nhardly have been accidental.\"<\/p>\n
In Taipei, intervention by the central bank offset a round of
\nU.S. dollar selling by Taiwanese exporters.<\/p>\n
Like the Japanese government, authorities in Taiwan are
\nconcerned the country's export competitiveness will suffer if the
\nlocal currency rises too fast.<\/p>\n
The U.S. dollar closed at NT$33.568, up from NT$33.558 on
\nFriday. The U.S. currency was trading around its intraday low of
\nNT$33.510 when the central bank began buying dollars, dealers
\nsaid.<\/p>\n
The Singapore dollar drifted lower throughout the day, but
\nremained in a tight range.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1.7660, up from
\nS$1.7622 late Friday. It traded between S$1.7638 and S$1.7665.<\/p>\n
The U.S. dollar slipped in early trade on selling by some
\nbanks on behalf of their corporate clients. However, the U.S.
\ncurrency's fall below S$1.7640 prompted a large local bank to buy
\nU.S. dollars, possibly to cover its short U.S. dollar positions,
\ndealers said.<\/p>\n
The Philippine peso was a touch weaker in very thin trading
\nconditions.<\/p>\n
The dollar had difficulty advancing due to light corporate
\ndemand for the U.S. currency, dealers said. Foreign currency
\nremittances from Filipinos working abroad provided some support
\nto the peso.<\/p>\n
The dollar closed at 50.430 pesos on the Philippine Dealing
\nSystem, up from 50.420 pesos Friday. Trading volume thinned to
\n$86 million from $154 million on Friday.<\/p>\n
The Indonesian rupiah strengthened in the morning session, but
\ngave up its gains later in the day on the heels of a 2.5% drop in
\nJakarta's main stock index.<\/p>\n
The dollar closed at Rp 8,715 after trading as low as Rp 8,590
\nearlier in the day.<\/p>\n
Fresh economic data issued Monday had little impact on
\ncurrency trading.<\/p>\n
On a positive note, the government reported that inflation
\nfell to 11.48 percent in June from 12.93 percent in May.<\/p>\n
News on the trade front wasn't as promising. The government
\nreported that the country's trade surplus narrowed to $2.31
\nbillion in May from $2.34 billion in April.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-down-dollar-stable-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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