Asian monies fall due to outflow<\/p>\n
HONG KONG (Dow Jones): Asian currencies slipped further
\nagainst the U.S. dollar during local trading hours Thursday, as
\nforeign investors accelerated the withdrawal of funds from the
\nregion.<\/p>\n
The won was hit hard, as asset repatriation drove the U.S.
\ndollar to its highest level against the South Korean currency in
\nmore than two months.<\/p>\n
The Taiwanese, Thai and Indonesian currencies were also
\ndragged lower, as dealers also reported net outflows of
\ninvestment funds from those markets too.<\/p>\n
\"We are seeing net asset sales across the region,\" said Steve
\nChang, Hong Kong-based foreign exchange manager at State Street
\nBank, a major global custodian which closely monitors portfolio
\ninvestment flows.<\/p>\n
In Korea a combination of higher interest rates, fears pricked
\nby the Daewoo Group's cash-flow crisis and nervousness over
\nbroader regional tensions triggered a won sell-off which drove
\nthe U.S. dollar as high as 1,209.50 won in intraday trading, the
\nhighest level it has seen since mid-May.<\/p>\n
\"Some foreign funds have been pulled out of the stock market
\nand repatriated. The amounts are not huge, but the sales do send
\na strong signal to the foreign exchange market,\" said the
\ntreasurer at one major U.S. bank in Seoul.<\/p>\n
By the end of domestic trading, the U.S. dollar had eased
\nslightly from its earlier high to close at 1,208.30 won, up from
\n1201.00 won at the end of Wednesday's session.<\/p>\n
Dealers said the rise in forward rates partly reflected the
\nmarket's belief that won interest rates are heading higher
\nfollowing the recent rise in domestic bond yields.<\/p>\n
Elsewhere net outflows of foreign funds from the Taipei stock
\nmarket whittled away at the New Taiwan dollar as relations
\nbetween Taiwan and China remained fraught with tension.<\/p>\n
At the close of local trading, the U.S. dollar had edged
\nhigher to NT$32.285, up from NT$32.281 the day before.<\/p>\n
In Southeast Asia, both Thailand and Indonesia saw fund
\noutflows dragging local currencies lower.<\/p>\n
Dealers at Thai banks reported sizable baht sales by U.S.
\ninvestment banks. They said foreign investors were pulling assets
\nout of Thailand in response to the heavy first half losses
\nannounced by Thai banks.<\/p>\n
Late in Asian trading, the U.S. dollar had risen to 37.3050
\nbaht, up from 37.1850 baht toward the end of Asian hours
\nWednesday.<\/p>\n
According to a senior dealer at one Thai bank the outflow has
\nsufficient momentum to drive the U.S. dollar higher still over
\ncoming days to levels around 37.50 baht or 37.60 baht.<\/p>\n
Net outflows also dragged the rupiah lower on Thursday.<\/p>\n
As rupiah yields dipped to their lowest level since the start
\nof Indonesia's economic crisis two years ago, some market players
\nliquidated long rupiah positions in the belief that the rewards
\nof holding the currency no longer adequately compensate them for
\nthe risk involved.<\/p>\n
Late in Asian dealing, the U.S. dollar had climbed to Rp
\n6,767, up from Rp 6,717 the day before.<\/p>\n
Following Wednesday's auction of Bank Indonesia paper, which
\nsaw the one month yield drop to just 14.57 percent, the implied
\nyield on three month dollar\/rupiah forwards traded as low as 13.6
\npercent Thursday, compared with levels above 60 percent seen six
\nmonths ago.<\/p>\n
The Singapore dollar, however, continued to attract buying
\ninterest Thursday, with heavy U.S. dollar offers seen capping the
\nU.S. currency at S$1.7000.<\/p>\n
Despite the interest, the Singapore dollar was at S$1.6985
\nversus the U.S. currency late in the Asian session, a bit weaker
\nthan S$1.6980 the previous day.<\/p>\n
The Philippine peso held its own, with the U.S. dollar, ending
\nthe domestic session at 38.450 pesos, unchanged from the day
\nbefore.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-fall-due-to-outflow-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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