SE Asian currencies gain in lackluster trading<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies were
\nmarginally higher against the U.S. dollar in late trading
\nThursday, compared with levels seen Wednesday.<\/p>\n
The bulk of trading activity focused on filling one-off
\ncommercial orders, traders said, with interbank players sitting
\non the sidelines.<\/p>\n
\"This week (trading) has been particularly sparse, as there
\nhas been a move to reduce exposure to the risks associated to the
\nregion,\" said a trader at a major U.K. bank.<\/p>\n
\"The big global questions - interest rate cuts and the impact
\nof shocks in markets such as Latin America - have taken the focus
\noff Asia.\"<\/p>\n
His comments characterize what traders and economists are
\ncalling the post-shock phase, where markets are quiet following a
\nperiod when currencies moved in leaps and volatile bounds.<\/p>\n
\"The question now is what event will occur to spark movement
\nin regionals,\" said Jonathan Hazell, chief strategist at Barclays
\nCapital.<\/p>\n
The lack of regional liquidity is creating an odd scenario
\nwhere traders - seeing a swing in the market - have to ask if the
\nvolatility is \"just another stone in the pond\" or \"a genuine
\nevent,\" said an economist at a U.S. bank.<\/p>\n
In a late trade, the U.S. dollar was trading at S$1.7165, down
\nfrom S$1.7257 in late Asian trading Wednesday. The U.S. currency
\nmoved sideways in intraday trading, but only after falling
\novernight, when a US$50 million buy order for Singapore dollars
\npushed the U.S. dollar as low as S$1.7140.<\/p>\n
\"Investors now look comfortable to be long U.S. dollars at
\nthis level. No one is eager to sell,\" said a trader at a Japanese
\nbank.<\/p>\n
The U.S. dollar is flat against Indonesia's rupiah at 10,975
\nin the late Asian trade, unchanged from late trading Wednesday.<\/p>\n
Baht<\/p>\n
Thailand's currency doesn't have the same liquidity woes,
\ntraders said. They noted that the U.S. dollar is trading at 40.60
\nbaht, down slightly from 40.80 baht in late trading Wednesday, as
\nthe baht has been a pillar of consistency in recent weeks.<\/p>\n
\"The central bank is making real progress in trying to devise
\na workable program for banks to resolve debts,\" said one regional
\neconomist at a U.S. bank.<\/p>\n
It (the Thai central bank) is focusing on nitty-gritty
\nproblems, which is a good sign because those are the important
\ndetails in getting banks on track,\" the Singapore-based U.S.
\neconomist said.<\/p>\n
He used the sticky problem of delinquent loans, where
\ncustomers are holding money for fear that credit will be cut off
\nif they pay back loans, as a prime example.<\/p>\n
\"This is artificially inflating non-performing-loan figures,
\nso there is a proposal to establish a code of conduct to penalize
\ndelinquency,\" he said. \"It's a small but important action,
\nshowing that Thailand is serious about rectifying the banking
\nproblem.\"<\/p>\n
The baht is expected to remain range-bound between 40 baht and
\n42 baht, \"at least until some fundamental news breaks, either in
\nThailand or the region,\" said a trader at a Thai bank in
\nSingapore.<\/p>\n
In North Asia markets, the U.S. dollar is trading at 1,383
\nwon, up from 1,376 won in late trade Wednesday. Banks and
\ncorporations bought U.S. dollars in intraday trading to pay off
\noutstanding foreign debts, trader said.<\/p>\n
\"One of the reasons for the won's strength in recent months is
\nthe focus on the current-account surplus figures,\" said Hazell.<\/p>\n
But inventories have been largely depleted, he said, which
\nwill lead to an acceleration in export contraction. The knock-on
\neffort will be weaker net U.S. dollar balances, meaning onshore
\nrates for the won will erode as the dollar becomes increasingly
\nvaluable.<\/p>\n
In Taiwan, the U.S. dollar is trading at NT$34.491 in late
\ntrading Thursday, down from NT$34.505 Wednesday.<\/p>\n
Taiwan's currency continued to strengthen in late trading
\nafter news reports that the central bank had intervened in the
\nmarket.<\/p>\n
The action - along with a relatively stable yen in intraday
\ntrading - kept the local currency within a tight trading band
\nagainst the U.S. dollar during the day, traders said.<\/p>\n
In the Philippine Dealing System, the U.S. dollar is trading
\nat 43.78 pesos, up slightly from 43.77 pesos Wednesday. As in
\nSouth Korea, corporate demand for the U.S. dollar in intraday
\ntrading weighed the peso down, traders said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-currencies-gain-in-lackluster-trading-1447893297",
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