SE Asian currencies rise after Japanese yen rallies<\/p>\n
SINGAPORE (Dow Jones): Caught short by the rally of the
\nJapanese yen, market players bought back Southeast Asian
\ncurrencies during Asian trading hours yesterday, driving the
\nregional currencies higher against the U.S. dollar.<\/p>\n
The Malaysian ringgit and the Singapore dollar led the move as
\nthe U.S. funds and investment banks who on Monday had sold the
\ncurrencies short in anticipation of further depreciation were
\nforced to cover their positions by the yen's run up.<\/p>\n
\"They were caught short at a very bad level and had to
\nunwind,\" a trader at a Dutch bank in Singapore said.<\/p>\n
The rebound saw the ringgit and the Singapore dollar regain
\nsome of the ground they had lost the previous day when the market
\nhammered them lower in response to what was perceived as a
\nloosening of Malaysia's monetary policy.<\/p>\n
By late in Asian trading the ringgit had strengthened
\nconsiderably with the U.S. dollar dropping back to 4.1250
\nringgit, compared with 4.1710 ringgit late the day before.<\/p>\n
Against the Singapore dollar the U.S. currency was at
\nS$1.6915, down from S$1.7160.<\/p>\n
The Thai baht also rose Tuesday, with the U.S. dollar dropping
\nto end Asian hours at 42.1550 baht, down from 42.3750 baht the
\nprevious day, after the Bank of Thailand earlier assumed control
\nof four ailing banks.<\/p>\n
Offshore fund managers who had bid up the U.S. dollar on
\nuncertainty over how the banks were to be dealt with took the
\ncentral bank action as their cue to book profits, traders said.<\/p>\n
\"The central bank calmed fears of a run on the banking system
\nand brought some confidence back into the market, strengthening
\nthe baht. This was more than just the yen's rally at work here,\"
\nthe Dutch bank trader said.<\/p>\n
Among other regional currencies the rupiah ended the day
\nslightly lower against the U.S. dollar.<\/p>\n
With no underlying customer interest to trade the Indonesian
\ncurrency, the rupiah's moves are attributable to the handful of
\nbanks who are still prepared to quote prices adjusting their
\nquotes in line with the rise in the yen, traders said.<\/p>\n
With the Philippines closed for a public holiday marking the
\ninauguration of President Joseph Estrada, no peso trading took
\nplace on the Philippine Dealing System.<\/p>\n
In North Asia, both the new Taiwan dollar and the won ended
\nhigher in parallel with the yen.<\/p>\n
Against the Taiwanese currency the U.S. dollar ended trading
\nat NT$34.351, down from NT$34.551 the day before.<\/p>\n
The U.S. dollar also ended at 1,373 won, down from 1,383 won
\nat Monday's close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-currencies-rise-after-japanese-yen-rallies-1447893297",
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