SE Asian currencies edge higher<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies edged a
\ntouch higher during Asian trading hours yesterday, in tandem with
\nthe yen and regional stock markets.<\/p>\n
As lingering fears of central bank intervention lifted the
\nJapanese currency against the U.S. dollar, participants in the
\nregional foreign exchange markets pared back their long positions
\nin the U.S. dollar in the run-up to the weekend.<\/p>\n
But although analysts and traders say that trading over the
\ncoming week will be choppy, warning that the U.S. currency is
\nhighly vulnerable to a short-term correction, most maintain the
\nview that the U.S. dollar remains a long-term buy against Asian
\ncurrencies.<\/p>\n
\"What we could see is weak dollar longs squeezed out as short-
\nterm events drive people out of their positions,\" said Jonathan
\nHazell, Asian currency strategist at Barclays Capital in
\nSingapore.<\/p>\n
While either yen-supportive intervention by the bank of Japan
\nor any further drops in the U.S. stock market are likely to
\ntrigger flurries of U.S. dollar selling in the regional foreign
\nexchange markets, the boost to Southeast Asian currencies would
\nbe short-lived argue market observers.<\/p>\n
\"At the moment term regional markets are being driven by
\nshort-term speculative plays. People are buying and selling in
\nranges as fresh concerns emerge,\" says Thio Chin Loo, foreign
\nexchange strategist at Banque Paribas in Singapore.<\/p>\n
Overall the negative tone on Asian currencies is still clear,
\nand that is unlikely to change unless Japan shakes off its policy
\nparalysis and Asia's economies and stock markets stop bleeding,\"
\nsaid Thio at Paribas.<\/p>\n
Traders and analysts at other banks reflect this view, saying
\nthat whatever setbacks the U.S. dollar suffers in coming weeks,
\nthe longer term perspective is still clear.<\/p>\n
Traders even remained chilly towards the baht, mustering
\nlittle enthusiasm for the central banks long-awaited banking
\nreform measures, announced yesterday.<\/p>\n
Long priced into the market, the reforms, which included the
\ncentral bank take-over of two commercial banks and five finance
\ncompanies, had little immediate impact on the baht.<\/p>\n
Late in Asian trading the U.S. currency was quoted at 41.80
\nbaht, a little below 41.90 late the previous day.<\/p>\n
Although greeting the clean-up as a step in the right
\ndirection, foreign exchange traders and analysts warn that the
\ncost of the banking crisis, both in Thailand and elsewhere in
\nAsia, still has to be paid in full.<\/p>\n
\"Looking at the big picture, the dollar's uptrend is still
\nintact,\" said Hazell at Barclays.<\/p>\n
Despite the progress on bank restructuring, few traders expect
\nthe baht to head much higher in the short to medium term, with
\nthe U.S. currency seen well supported at levels around 41.00
\nbaht.<\/p>\n
The U.S. dollar is also seen as well supported against other
\nregional currencies, with S$1.7400 and 4.1500 ringgit regarded as
\nlikely floors against the Singapore dollar and the Malaysian
\ncurrency over the coming week.<\/p>\n
The U.S. currency was also at 4.1800 ringgit, down from 4.1950
\nlate on Thursday.<\/p>\n
Late in Asian trading yesterday the U.S. dollar was trading at
\nS$1.7461, down from S$1.7520 the previous day.<\/p>\n
The U.S. dollar also slipped against the rupiah yesterday,
\nalthough regional currency traders were nervous over the
\npossibility of political rallies scheduled for Monday's
\nIndependence Day holiday flaring into violence.<\/p>\n
Late in Asia the U.S. dollar was at 12,750 rupiah, down from
\n12,925 a day earlier.<\/p>\n
Should Monday's holiday pass off peacefully many market
\nparticipants see the rupiah remaining fairly stable, or even
\nstrengthening slightly in the spot market, a view which some
\ntraders suggest may encourage aggressive market players to lend
\nthe Indonesian currency via the swaps market in order to pick up
\nsky-high high rupiah yields.<\/p>\n
The Philippine peso, too, strengthened against the U.S. dollar
\nyesterday, while in North Asia the won and the new Taiwan dollar
\nrose and the pressure on the Hong Kong dollar in the forward
\nmarket eased somewhat.<\/p>\n
At the close of trading on the Philippine Dealing System, the
\nU.S. dollar was quoted at 43.05 pesos, down from 43.21 at
\nThursday's close.<\/p>\n
Against the South Korean currency, the U.S. dollar ended at
\n1,325 won, down from 1,332.50 the day before.<\/p>\n
Against the new Taiwan dollar, the U.S. currency finished
\ndomestic trading at NT$34.702, compared with NT$34.771 the
\nprevious day.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-currencies-edge-higher-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}