Regional currencies end mixed against dollar in rough trading<\/p>\n
SINGAPORE (Dow Jones): Asian currencies are mixed against the
\nU.S. dollar in choppy trading late Thursday as currency markets
\ntake a breather after a number of volatile sessions earlier in
\nthe week, traders said.<\/p>\n
Regional currencies moved largely sideways during the session,
\neven as the U.S. dollar moved quietly higher against the yen, the
\nresidual effect of a strong showing on Wall Street overnight. The
\nDow Jones Industrial Average closed up 188 points at 10588
\npoints.<\/p>\n
At 0800 GMT (4:00 a.m. EDT), the U.S. dollar was trading at
\nY107.85, up from Y107.13 in late Asian trading Wednesday.<\/p>\n
While the Korean won and Indonesian rupiah managed to move
\nhigher against the U.S. dollar, the Singapore dollar, Philippine
\npeso, and Thai baht faded during the session. The New Taiwan
\ndollar ended the session flat.<\/p>\n
Traders said regional currencies were moving on domestic news
\nfor the moment, but cautioned that Japan's decision Friday on the
\nsize of its supplementary budget could roil markets. Forecasts
\nare anywhere from Y10 trillion to more than Y13 trillion.
\nEconomists said the higher the figure, the more Japan's domestic
\nfixed income markets would come under pressure.<\/p>\n
Japanese monetary and fiscal policy decisions aside, regional
\ncurrencies have by and large been mirroring movement in the Thai
\nbaht in recent sessions, especially after the Bank of Thailand
\nTuesday reinterpreted an existing rule on lending baht to
\nnonresident parties.<\/p>\n
At 0800 GMT, the U.S. dollar was trading at 39.395 baht, up
\nfrom 39.085 baht in late Asian trading, but well down from 41.24
\nbaht Sept. 29.<\/p>\n
Traders and currency strategists are now saying that October
\nis shaping up to be a giant game of chance, given the Oct. 20
\npresidential elections in Indonesia.<\/p>\n
They said the focus will start to shift away from the baht and
\ntoward the uncertain fortunes awaiting the Indonesian rupiah. As
\none currency strategists said, "Rupiah strength is impossible to
\npredict in the short-term because it is based on politics not
\neconomic data."<\/p>\n
That political arena is becoming increasingly murky, following
\nthe announcement that National Awakening Party's Abdurrahman "Gus
\nDur" Wahid would campaign for the presidency.<\/p>\n
Nevertheless, Simon Flint, global currency strategist at Bank
\nof America in Hong Kong, predicts that Megawati Soekarnoputri
\nwill ultimately prevail, but only if she manages to convince Gen.
\nWiranto to accept the vice-presidency.<\/p>\n
"We expect that the rupiah will breach Rp 7,000 on news of
\nMegawati's victory. A reasonable target would be Rp 6,700 in the
\nthin market conditions," Flint said.<\/p>\n
He said nervous investors can reduce the high risk of a rupiah
\ntrade by taking on proxy positions, especially in the baht and
\nPhilippine peso. The baht represents the closest proxy, with a
\n0.92 correlation coefficient, he said. If the U.S. dollar did
\nfall to Rp 6,700, the baht would likely hit 38.72 baht against
\nthe U.S. dollar.<\/p>\n
At 0800 GMT, the U.S. dollar was quoted at Rp 7,735, down
\nslightly from Rp 7,740 late Wednesday.<\/p>\n
On the Philippine Dealing System, the U.S. dollar was trading
\nat 40.325 pesos, up from 39.99 pesos in late trading Wednesday.<\/p>\n
The U.S. dollar was also trading at S$1.6788, up from S$1.6764
\nlate Wednesday.<\/p>\n
Bank of America's Flint said the Singapore dollar would likely
\nclimb to S$1.665 against the U.S. dollar if a Megawati election
\nvictory pushed the U.S. dollar down to Rp 6,700.<\/p>\n
In other markets, the U.S. dollar was trading at 1,201 won,
\ndown from 1.203.7 won in late trading Wednesday. South Korea's
\nstock market index climbed once again during the session, closing
\n1.8 percent higher at 851.15 points - an 8 percent rise over the
\nintraweek low of 788.73 points.<\/p>\n
South Korea's gross domestic product is expected to grow 11
\npercent in the third quarter and 9.3 percent in the fourth
\nquarter, according to Bank of Korea Governor Chon Chol-hwan. GDP
\ngrowth for the year is expected to be 8.8 percent, a sharp rise
\nfrom a 5.8 percent contraction in 1998.<\/p>\n
Against the New Taiwan dollar, the U.S. dollar was trading at
\nNT$31.78, flat from late Wednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/regional-currencies-end-mixed-against-dollar-in-rough-trading-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}