Regional monies down against dollar<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies were lower
\nagainst the U.S. dollar in late Asian trading Tuesday after a
\nsurge in the U.S. currency against the Japanese yen prompted
\ndollar-bidding across the region, traders said.<\/p>\n
The U.S. dollar rebounded sharply from an overnight sell-off
\nto 115 yen as the Dow Jones Industrial Average fell 126 points to
\nclose at 8,695 points. By mid-afternoon, the U.S. dollar had
\nsurged from the six-week low, trading as high as 117.50 yen
\nduring the session.<\/p>\n
Traders said investors in North America and Europe were forced
\nto aggressively cover short U.S. dollar positions after strong
\nyear-end Japanese corporate and institutional demand pushed the
\ndollar higher.<\/p>\n
Traders and economists said the performance on Wall Street
\ntonight will once again dictate the direction of the dollar.<\/p>\n
\"The way the Dow is moving makes it a good indicator of
\nsentiment, and the pace in which it moves will affect the dollar-
\nyen. If there are more sharp 2 percent - 3 percent falls, then
\nthe dollar could quickly be back at 115 yen,\" said Andrew Fung,
\ntreasury economist at Standard Chartered Bank in Singapore.<\/p>\n
Still, the general lack of interest in taking year-end
\npositions in illiquid regional currency markets has created a lag
\nto such movement in the \"big dollar,\" as one trader said.<\/p>\n
Instead, the U.S. dollar climbed sharply against the Thai
\nbaht, in part because of the flagging yen, but also because of
\nwhat traders described as overly rambunctious baht-buying this
\npast week in the run-up to the Financial Restructuring Agency
\nauction.<\/p>\n
At 09:00 GMT (4:00 a.m. EST), the U.S. dollar was trading at
\n36.0750 baht, well up from 35.7350 in late Asian trading Monday.<\/p>\n
\"People are using this opportunity to readjust positions, and
\nbuy some dollars after a week of buying baht before the auction,\"
\nsaid a trader at a Thai bank in Singapore, adding that the
\nmomentum created could take the U.S. currency as high as 36.20.<\/p>\n
Bidding for about $11 billion worth of assets of 56 defunct
\nThai finance companies ended Tuesday. The results - to be
\nannounced Wednesday - \"have the potential to make or break an
\neconomic recovery,\" said Desmond Supple, a regional economist at
\nBarclays Capital in Singapore.<\/p>\n
Against the Singapore dollar, the U.S. dollar was trading at
\nS$1.6518, up from S$1.6470 in late trading Monday.<\/p>\n
The Singapore dollar is moving in line, albeit sluggishly,
\nwith the weakening yen, traders said.<\/p>\n
\"There isn't much in the market. The U.S. dollar will likely
\nfinish the year trading in this range, S$1.6450 on the low side,
\nS$1.66 on the high,\" said a trader at a Japanese bank in
\nSingapore.<\/p>\n
Traders still complained about a lack of real domestic news on
\nwhich to trade.<\/p>\n
The U.S. dollar moved higher even against the dormant rupiah,
\ntrading at 7,605, up from 7,525 late Monday. \"There is U.S.
\ndollar-bidding in every market today - not a lot, but enough to
\npush it higher,\" said a trader at a Thai bank.<\/p>\n
The U.S. dollar was also trading at 39.00 pesos, up from
\n38.950 late Monday.<\/p>\n
In North Asia, the U.S. dollar was trading at 1,210.7 won and
\nNT$32.251, up from 1,203.5 won but down from NT$32.258,
\nrespectively.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/regional-monies-down-against-dollar-1447893297",
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