SE Asian currencies show moderate positive gains<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies rose across
\nthe board against the U.S. dollar during Asian trading Tuesday,
\nled by moderate to strong gains in the Thai baht, Singapore
\ndollar, Chinese yuan and New Taiwan dollar.<\/p>\n
Weakness in the U.S. dollar versus the yen Tuesday, rising
\nexpectations of further cuts in the U.S. Fed funds rate and
\ncaution on the part of hedge funds speculating in Asian
\ncurrencies contributed to the strength of regional currencies
\nTuesday, said market players.<\/p>\n
The dollar fell in early Asian trading Tuesday to 132.52 yen
\naround 08:35 GMT from 134.32 yen Monday.<\/p>\n
In Asian currencies, the Chinese yuan ended Tuesday onshore at
\nits strongest point against the dollar since April 30. The
\nSingapore dollar broke above the psychological S$1.68 level to
\nthe U.S. dollar while the New Taiwan dollar rose to a more than
\nfour-month high against the U.S. dollar.<\/p>\n
\"We don't expect a big change in the trend. In the big
\npicture, we see the dollar-yen (dollar versus the yen) going down
\nto 128.00-129.00,\" said Daniel Lian, head of Asian markets
\nresearch at ANZ Investment Bank in Singapore.<\/p>\n
\"On the back of the strengthening of about four yen, there is
\nroom for the Asian currencies to strengthen a bit more,\" he said.<\/p>\n
\"The focus of the Asian currencies remains on the softer U.S.
\ndollar in the near term. With international banks tightening
\ncredit as a result of the U.S. hedge fund (Long Term Capital
\nManagement) debacle, there would be less risk appetite by
\noffshore financial institutions to engage in speculative
\nactivities against the region's currencies,\" said a strategist at
\nStandard Chartered Bank in Singapore.<\/p>\n
\"Instead, there is some talk that funds may be looking once
\nagain at high yield plays,\" said the strategist.<\/p>\n
Among the highlights of Tuesday's trading was the gain in the
\nChinese yuan, said market players.<\/p>\n
Falling dollar demand and reports of a top government
\nminister's reconfirmation that China won't devalue its currency
\npushed the yuan higher Tuesday, traders said.<\/p>\n
They said a crackdown on illegal currency transactions - which
\nbegan in earnest early last month - has shaved demand for dollars
\nby stopping a large number of dollar-buying orders reaching the
\nofficial exchange.<\/p>\n
In onshore trading Tuesday, the U.S. dollar closed at 8.2779
\nyuan, down from 8.2781 on Monday. It traded within the range of
\n8.2778 to 8.2781 range.<\/p>\n
Benefiting on the back of the yuan was the New Taiwan dollar,
\nwhich rose Tuesday to a more than four-month high against the
\nU.S. dollar. Exporters and holders of foreign currency deposits
\nwere the main sellers of U.S. dollars, said market players.<\/p>\n
At 08:00 GMT, the U.S. dollar ended lower at NT33.457, the
\nlowest closing level since NT$33.230 on June 1, and down from
\nSaturday's NT$33.710 close. Trading volume soared to a 10-month
\nhigh of US$718.5 million from Saturday's half-day session of
\nUS$324.0 million.<\/p>\n
Similarly, the Philippine peso closed higher against the
\ndollar Tuesday in local trading. At the close, the dollar
\naveraged 43.778 peso on the Philippine Dealing System, down 12.8
\ncentavos from Monday's average of 43.906. The dollar was last
\ntraded at 43.780 Tuesday. Volume totaled $108.5 million, compared
\nwith $90.5 million Monday.<\/p>\n
\"The yen's gains are allowing the peso to appreciate further
\nin the absence of any major commercial demand for dollars,\" a
\ntrader with a foreign bank said.<\/p>\n
In southeast Asia, the Thai baht and the Singapore dollar
\nfigured as the day's top performers, market participants said.<\/p>\n
The entry of a new party into the coalition of Thai Prime
\nMinister Chuan Leekpai continued to bolster sentiment toward the
\nbaht, said traders.<\/p>\n
\"If the 38.50 baht level against the dollar gives way, the
\nnext level to watch is 37.20. There are still a lot of investment
\ninflows into the country,\" said Derrick Lee, senior currency
\nanalyst at MCM Asia Pacific.<\/p>\n
Technically, the key medium-term support for the U.S. dollar
\nis found at 37.00 baht, this year's low hit in April, said a
\nBarclays Capital strategist. The main plus factor for the baht is
\nthe effort by government to mitigate future systemic risks in the
\nbanking system, said the strategist.<\/p>\n
At 0954 GMT, the dollar is at 38.8950 baht in onshore trading,
\ndown from 39.1750 late Monday. The dollar traded at 39.0500 in
\nearly Asian trading.<\/p>\n
Against the Singapore dollar, the U.S. dollar fell below the
\npsychologically important S$1.68 level on the back of gains in
\nother regional currencies. With the yen expected to strengthen
\nfurther, market players said the downside for the U.S. dollar has
\nbeen revised lower. The current target is for the dollar to head
\nlower to S$1.6600, said Derrick Lee at MCM Asia Pacific.<\/p>\n
Against the Singapore dollar, the U.S. dollar was quoted at
\nS$1.6791, down from S$1.6853 late Monday.<\/p>\n
The often quietly traded rupiah also gained ground against the
\nU.S. dollar. After skirting around the key Rp 10,000 to the
\ndollar level all day, the Indonesian rupiah was trading at 10,050
\nlate Tuesday, as renewed rumors about the government's plan to
\nincrease monitoring of capital flows sparked dollar selling. The
\ndollar was quoted at 10,475 late Monday.<\/p>\n
The Indonesian currency tested the 10,000 level all day,
\ntraders said, but failed to hit it or break it.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-currencies-show-moderate-positive-gains-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}