Most SE Asian currencies edge higher<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies edged higher
\nagainst the U.S. dollar in late Asian trading Monday compared
\nwith levels late Friday, but on moderate volumes.<\/p>\n
Sharp inflows of funds to stock markets and other instruments
\nin the region, as well as overall improved sentiment toward the
\nregion, continued to lift currencies Monday, said market players.<\/p>\n
But the momentum for continued gains in regional currencies
\nmay be slowly waning amid growing concerns that the rally could
\ngo away like the one in February, as the fundamentals of the
\nAsian economies continue to be weak, they said.<\/p>\n
A rally in Asian stocks Monday, with key regional indexes
\ngaining between 0.9 percent and 5.0 percent, fueled demand for
\nregional currencies, said market players.<\/p>\n
The Singapore dollar, the Thai baht, New Taiwan dollar and
\nSouth Korean won all registered gains against the U.S. dollar.
\nThe Indonesian rupiah slipped, while the market for trading in
\nthe Philippine peso was closed Monday.<\/p>\n
\"There's a lot of capital inflows into the region. Money has
\nflowed into Thai stocks and bonds issued in Singapore. The market
\nis already long in (U.S.) dollar-baht and (U.S.) dollar-Sing,\"
\nsaid the regional currencies head at a major UK bank here, adding
\nthat there could be some profit-taking in the short term.<\/p>\n
At 09:00 GMT, the U.S. dollar is at S$1.6205, down from
\nS$1.6255 in late Friday trading. The dollar is also at 36.62
\nbaht, down from 36.70 Friday.<\/p>\n
Intermediate support for the U.S. dollar is seen at S$1.6150
\nand further at S$1.6000, said market players. But they also
\nwarned that the Singapore dollar's gains from these levels could
\nbe limited, as the country's de facto central bank may be willing
\nto buy U.S. dollars to prevent a sharp rise in the local
\ncurrency.<\/p>\n
In Thailand, the baht also benefited from fund inflows, said
\nmarket players.<\/p>\n
\"The major reason for gains in currencies is that sentiment
\nhas improved. In some cases, especially Thailand, things have
\nimproved earlier than people expected,\" said SE Banken regional
\neconomist Chian Woon Kien. The dollar should stay below 40.00
\nbaht in the short term, she said.<\/p>\n
According to the latest report by Paribas Global Forex
\nStrategy issued Monday, there is some further downside bias for
\nthe U.S. dollar against the baht, with support found at 35.55
\nbaht and lower at 35.00.<\/p>\n
The UK bank trader said market players are already long in the
\nU.S. dollar against the Singapore dollar and the baht, and
\nfurther gains toward support levels could be marginal.<\/p>\n
In North Asia, the New Taiwan dollar ended at a seven-and-a-
\nhalf-month high against the U.S. dollar Monday as exporters
\ncontinued to sell the U.S. currency, said market players. The
\nlocal dollar's rise was aided by a weaker U.S. dollar against the
\nyen, said dealers.<\/p>\n
At 08:00 GMT, the U.S. dollar ended lower at 32.440 New Taiwan
\ndollars, from Saturday's NT$32.450 close, the lowest close since
\nNT$32.438 on March 16.<\/p>\n
Similarly, the South Korean won closed higher. The U.S.
\ncurrency closed at 1,318.70 won, lower than Friday's close of
\n1,319.<\/p>\n
\"On top of the yen's rise against the dollar, some local
\nexporters also sold the dollar belatedly, putting more pressure
\non it,\" said Kim Yong-ho, a trader at Korea's Hanil Bank, adding
\nthat the U.S. currency was also hurt by stock fund inflows from
\noverseas.<\/p>\n
The yen was trading at 115.68-72 to the dollar, up from 116.07
\nin New York Friday afternoon and 116.07-10 in Tokyo late Friday.<\/p>\n
Bucking the overall trend Monday was the Indonesian rupiah,
\nwhich ended lower. At 09:00 GMT, the dollar is at Rp 8,000, up
\nfrom 7,550 seen in late Friday dealings.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/most-se-asian-currencies-edge-higher-1447893297",
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