Most Asian currencies edge slightly higher, rupiah weak<\/p>\n
HONG KONG (Dow Jones): A barrage of verbal interventions
\nbacked by dollar purchases executed by state-run banks took some
\nof the recent shine off the South Korean won Tuesday, forcing the
\ncurrency lower on the day.<\/p>\n
Trading activity elsewhere in the region was muted, with most
\nAsian currencies edging slightly higher in tightly range-bound
\nmarkets.<\/p>\n
Southeast Asian currencies ended local trading hours mostly a
\ntouch higher, despite an early selloff in the rupiah.<\/p>\n
Sentiment toward the Indonesian currency continued to suffer
\nfrom the weekend's speculation that cabinet minister General
\nWiranto may be given his marching orders, potentially
\nprecipitating a military coup.<\/p>\n
The market's mood was further clouded by news that religious
\nunrest had spread to the island of Lombok and reports of
\ndemonstrations by dispossessed farmers on the island of Bintan,
\nwhich neighbors Singapore.<\/p>\n
In response the dollar was bid up to touch Rp 7,300, only to
\nease back again after encountering firm offers at that level.<\/p>\n
With dollar-buying interest seen at levels between Rp 7,150
\nand Rp 7,200, the U.S. currency is expected to range tightly
\nagainst the rupiah over the short term.<\/p>\n
Late in Asia Tuesday, the dollar was quoted at Rp 7,262, down
\nslightly from Rp 7,278 the previous day.<\/p>\n
Meanwhile, from Seoul, repeated comments from the South Korean
\nfinance ministry triggered a wave of dollar short-covering
\nagainst the won Tuesday, as the Seoul authorities stressed they
\ndon't want to see a sharp rise in the local currency.<\/p>\n
South Korea's newly appointed Minister of Finance and Economy
\nLee Hun-jai indicated on Friday that the government would in
\nfuture be less inclined to intervene in the foreign exchange
\nmarket to suppress the currency.<\/p>\n
Lee's remarks, reported in the Korean press, sparked heavy won
\nbuying by local and international market participants which on
\nMonday carried the won to its highest level since November 1997.<\/p>\n
The rally prompted finance ministry officials to repeat
\nwarnings Tuesday morning that the government remains prepared to
\nintervene to damp excessive market volatility.<\/p>\n
Those threats were lent further weight later Tuesday by
\nreports that Lee had said there was no sound reason for the won's
\nabrupt appreciation.<\/p>\n
Lee's efforts to talk down the won, backed by dollar-buying
\nfrom the state-run Korea Development Bank, proved effective
\nTuesday.<\/p>\n
By the end of local trading the dollar had been driven up to
\n1,127.00 won, from 1,121.00 won at Monday's close.<\/p>\n
Elsewhere in North Asia, the New Taiwan dollar ended the day
\nflat, as U.S. dollar purchases executed by the central bank
\noffset local currency buying by foreign investors.<\/p>\n
At the Taipei close, the U.S. dollar was at NT$30.837,
\ncompared with NT$30.835 the day before.<\/p>\n
With little news to guide the market, trading in the Singapore
\ndollar and Thai baht was led by activity in the rupiah Tuesday.
\nAfter being bid up to a high of S$1.6750 against the Singapore
\ncurrency, the U.S. dollar slipped to end Asian hours at S$1.6714,
\ndown from S$1.6742 late Monday.<\/p>\n
Against the baht, the dollar eased to 37.365 baht, from 37.425
\nbaht the previous day.<\/p>\n
In Manila, the Philippine peso bucked the regional trend,
\nending lower in relatively light trading.<\/p>\n
At the close, the dollar was at 40.605 pesos, compared with
\n40.564 pesos the day before.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/most-asian-currencies-edge-slightly-higher-rupiah-weak-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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