SE Asian currencies close on weak note against dollar<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies ended a
\nchoppy Asian trading session on Friday on a weak note against the
\nU.S. dollar, after comments from Lawrence Summers, the U.S.
\ndeputy Treasury secretary, sent the dollar soaring against the
\nJapanese currency.<\/p>\n
Although the reaction of the regional currencies was muted
\ncompared with the yen's response, participants in the regional
\nforeign-exchange markets did not hesitate to take Summers'
\nremarks as their cue to buy U.S. dollars in anticipation of
\nrenewed currency weakness across Asia.<\/p>\n
Summers, who was visiting Tokyo, was said by a senior official
\nof Japan's ruling Liberal Democratic Party to have warned that
\nJapan may not be doing enough to stimulate its ailing economy,
\nand to have advocated further monetary measures.<\/p>\n
\"In the short term, the regional currencies are being treated
\nas proxy yen trades,\" explained Desmond Supple, head of research
\nat Barclay's Capital in Singapore.<\/p>\n
The most pronounced reaction to the U.S. currency's surge came
\nin North Asia, where, after opening lower, the U.S. dollar leapt
\nby 0.7 percent against the South Korean won and by 0.5 percent
\nagainst the New Taiwan dollar, in response to Summers' comments.<\/p>\n
In North Asia, the U.S. dollar ended local trading in Seoul at
\n1,223 won, well above its early low for the day at 1,216 won, but
\nfractionally below 1,224 won at the end of Thursday's session.<\/p>\n
In Taipei, the U.S. currency closed at NT$33.055, up steeply
\nfrom its intraday low of NT$32.918, but still a touch down from
\nThursday's closing level of NT$33.063.<\/p>\n
On the Philippine Dealing System, the U.S. dollar followed a
\nsimilar pattern in trading against the peso (PHP). After sliding
\nto a low of 38.880 pesos in early trading, the U.S. currency
\nrallied in response to its upward move against the yen, to close
\nat 39.120 pesos. Thursday's closing level was 39.055 pesos.<\/p>\n
The U.S. dollar's upsurge against the yen also dominated
\ntrading in other Southeast Asian currencies, eclipsing domestic
\ninfluences on local foreign-exchange markets.<\/p>\n
In Singapore, the 1999 budget statement, presented in
\nParliament Friday afternoon, went largely disregarded by the
\nforeign-exchange market, after analysts forecast a fiscally
\nprudent budget offering few surprises.<\/p>\n
Although a squeeze in the forward market early in the day
\nforced some weaker participants to abandon their long-U.S. dollar
\npositions, pushing the U.S. currency to an intraday low of
\nS$1.7200, the U.S. dollar later regained its initial losses.<\/p>\n
By the end of Asian interbank trading, buying pressure had
\npushed the U.S. currency back up to S$1.7270, little changed from
\nits level of S$1.7278 late Thursday.<\/p>\n
The Indonesian parliament's approval of the country's 1999-
\n2000 budget Friday afternoon also had negligible impact on
\nforeign-exchange trading.<\/p>\n
Despite strong customer interest in buying U.S. dollars, the
\nrupiah ended Asian dealing little changed on the day, as demand
\nfor the U.S. currency was met by sales from state banks in
\nJakarta, according to dealers.<\/p>\n
Toward the end of Asian trading, the U.S. dollar was quoted at
\nRp 8,855, compared with Rp 8,839 the previous day.<\/p>\n
Among the regional currencies, only the Thai baht showed any
\nsigns of independent movement Friday, as local exporters took
\nadvantage of the U.S. currency's recent gains to cash in their
\nU.S. dollar holdings, generating heavy two-way flows in which the
\nlocal currency was forced up slightly from Thursday's closing
\nlevels.<\/p>\n
Toward the end of Asian trading, the U.S. dollar was quoted at
\n37.40 baht, down from 37.47 baht on Thursday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-currencies-close-on-weak-note-against-dollar-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}