Asian monies weighed down by U.S. dollar, local issues<\/p>\n
SINGAPORE (Dow Jones): The U.S. dollar's resurgence against
\nthe yen during Asian trading hours Tuesday undermined recent
\ngains made by other regional currencies.<\/p>\n
The Singapore dollar, Thai baht, Philippine peso and Korean
\nwon all fell sharply as the U.S. dollar climbed as high as 106.63
\nyen in intraday trading. The Indonesian rupiah and New Taiwan
\ndollar ended nearly flat.<\/p>\n
Traders said the dollar rose on the back of the Group-of-Seven
\nindustrialized countries' meeting over the weekend, when Japan
\nsaid it would be prepared to provide ample market liquidity to
\ncap yen strength.<\/p>\n
In late trading, the U.S. dollar was trading at 106.57 yen,
\nwell up from 104.11 yen in late Asian trading Monday.<\/p>\n
Traders and currency strategists said a stronger U.S. dollar
\nonly added to downward pressure on currencies already being
\nweighed down by domestic issues.<\/p>\n
\"It is a domestic story: Political uncertainty in Indonesia,
\ndoubts about bank reform and recovery in Thailand and South
\nKorea, and official support for a weaker Singapore dollar to
\nenhance competitiveness. All of these issues combined to make the
\nregionals weaker today,\" said Ryan Padgett, treasurer at Bank
\nBrussels Lambert in Singapore.<\/p>\n
He said Indonesia's problems continue to compound because of
\nthe government's reluctance to release the findings of a
\nPriceWaterhouseCoopers report on Bank Bali, unrest associated
\nwith the East Timor situation, and uncertainty over how the
\npresidential nomination process will progress.<\/p>\n
In late trading, the U.S. dollar was trading Rp at 8,485,
\nalmost unchanged from Rp 8,486 late Monday. Traders said the
\nextremely thin, choppy market amplified moves in the currency,
\nwith small U.S. dollar or rupiah orders placing undue pressure on
\npricing.<\/p>\n
The U.S. dollar was also trading at 41.2650 baht, up from
\n40.7350 baht on Monday.<\/p>\n
On the Philippine Dealing System, the U.S. dollar was trading
\nat 40.943 pesos, up from 40.73 pesos in late Asian trading
\nMonday.<\/p>\n
Padgett said that for the moment, countries such as the
\nPhilippines and Thailand are experiencing a lull in foreign
\ncapital inflows. He said many overseas fund portfolios are now
\nfully invested in regional markets, following the frenzied buying
\nactivity earlier in the year.<\/p>\n
The U.S. dollar was trading at S$1.7129, up from S$1.7038
\nMonday. Traders said the U.S. dollar easily moved higher because
\nof market awareness that the government is keen to keep the
\nSingapore dollar competitive with other regional currencies.<\/p>\n
\"The Singapore dollar went right along with the baht today,\"
\nsaid a trader at a U.S. bank in Singapore.<\/p>\n
In other markets, the U.S. dollar was trading at 1,215 won, up
\nfrom 1,210.8 won late Monday.<\/p>\n
The Bank of Korea said Tuesday that a weakening won in
\nconjunction with the yen's recent strength - climbing as high as
\n103.98 yen against the U.S. dollar this week - could put upward
\npressure on prices in South Korea, given the country's dependence
\non capital goods imported from Japan.<\/p>\n
He said this trend would continue if Japan continues to
\nsteadfastly ease fiscal policy without a corresponding easing in
\nmonetary policy.<\/p>\n
\"This policy mix is yen supportive and at the same time
\nreduces regional growth prospects,\" he said. Historically, the
\nSouth Korean central bank has tried to keep the ratio consistent
\nat about 10 to one, given that the country competes with Japan in
\nnearly half its exports.<\/p>\n
The U.S. dollar was also trading at NT$31.797, almost
\nunchanged from NT$31.795 in late Asian trading Monday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-weighed-down-by-us-dollar-local-issues-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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