Rupiah, baht take a fall as other Asian currencies mixed<\/p>\n
SINGAPORE (Dow Jones): Choppy trading in the yen continued to
\nset the tone for dealing in Asia's regional foreign exchange
\nmarkets Wednesday, leaving Southeast Asian currencies mixed at
\nthe end of local hours.<\/p>\n
The Singapore dollar finished almost flat on the day, while
\nthe Philippine peso edged a touch higher. Both the Indonesian
\nrupiah and the Thai baht fell steeply, however, as market
\nparticipants sought to exit their positions in the local
\ncurrencies.<\/p>\n
In North Asia the South Korean won and the new Taiwan dollar
\nboth ended slightly firmer, supported by a late rally in the yen.<\/p>\n
In Jakarta, heavy dollar-buying interest from local banks
\npushed the rupiah sharply lower from the start of trading, with
\nthe U.S. currency breaking up through resistance at Rp 9,000 to
\npeak at Rp 9,100, its highest level since the end of January.<\/p>\n
Much of the dollar-buying interest was attributed to position
\nunwinding by two particular Indonesian banks, which one European
\nbank trader in Jakarta estimated had bought up to $100 million
\nover recent days.<\/p>\n
With market liquidity evaporating fast as remaining
\ncounter-party credit lines are trimmed ahead of this Saturday's
\nexpected government announcement of bank closures, the demand for
\ndollars had a disproportionate impact on the rupiah's exchange
\nrate, explained the trader.<\/p>\n
It has become very difficult to get out of the market,\" he
\nsaid.<\/p>\n
Although traders in both Singapore and Jakarta said that Bank
\nIndonesia had sold U.S. dollars through state banks at levels
\nabove Rp 9,000, the apparent intervention had little effect.<\/p>\n
With the demand for U.S. dollars magnified by the continuing
\nunrest in Ambon, Maluku, and other provinces, and by fears of
\nescalating tensions in the run-up to June's parliamentary
\nelections, many market participants believe the U.S. currency
\nwill head higher still over the medium term.<\/p>\n
Some traders warn that Bank Indonesia may respond to the
\nrupiah's renewed weakness by tightening domestic liquidity,
\nboosting interest rates in an attempt to support the rupiah.<\/p>\n
Despite that, many dealers see the dollar overcoming
\nresistance at Rp 9,200 to rise to levels around 9,400 to 9,500 in
\nthe medium term.<\/p>\n
The rupiah closed Asian trading at 9,075 against the dollar,
\ndown a little from its intraday high, but above Rp 8,975 on
\nTuesday.<\/p>\n
Among other Asian currencies, the Thai baht also fell, in a
\nmove traders blamed primarily on U.S. dollar buying to cover
\nshort dollar\/long baht positions.<\/p>\n
Market participants were spooked, they said, by the continuing
\nparliamentary wrangling over Thailand's proposed bankruptcy and
\nforeclosure law.<\/p>\n
A Thai newspaper Wednesday quoted Finance Minister Tarrin
\nNimmanahaeminda as warning that \"all hell will break loose\" if
\nthe bill is passed carrying current senate amendments.<\/p>\n
Late in Asia Wednesday, the U.S. dollar had been pushed up to
\n37.49 baht, well above 37.30 late the day before.<\/p>\n
Elsewhere, the Singapore dollar dropped steeply in intraday
\ntrading, mirroring a dip in the yen.<\/p>\n
A flurry of short covering pushed the U.S. currency to a peak
\nof S$1.7240, although it later drifted off its high to end the
\nAsian day at S$1.7317, little different from S$1.7322 late
\nTuesday.<\/p>\n
On the Philippine Dealing System, the U.S. dollar ended
\ntrading against the peso at 39.020 pesos, down from 39.095 at the
\nprevious close.<\/p>\n
In North Asian markets, central bank intervention helped steer
\nthe new Taiwan dollar higher against the U.S. currency, which
\nfinished local trading in Taipei at NT$33.120, down from
\nNT$33.136 Tuesday.<\/p>\n
Against the Korean won, the U.S. dollar closed at 1,233 won,
\ndown from 1,236 the previous day, as the won continued to track
\nthe yen's moves.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-baht-take-a-fall-as-other-asian-currencies-mixed-1447893297",
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