SE Asian monies gain footing in active trading<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies were mostly
\nstronger against the U.S. dollar in late Asian trading Wednesday
\nin active dealings, while their North Asian counterparts
\nlanguished in line with the weaker yen.<\/p>\n
Focus on country-specific developments in Southeast Asia
\ncoupled with the entry of some foreign funds into the region
\nboosted Southeast Asian currencies Wednesday. The Singapore
\ndollar, Thai baht and Indonesian rupiah made significant gains
\nWednesday.<\/p>\n
\"We see some genuine funds coming into the Sing dollar and
\nThai baht. Some of these funds had gone into the stock markets
\n(of these countries) in the past two weeks and that caused quite
\na sharp run-up. Now, they are coming into the currencies,\" said
\nthe head of Asian currency dealing at a Japanese bank here.<\/p>\n
\"The yields on these (Southeast Asian) currencies is also
\nhelping attract some of these funds,\" he said.<\/p>\n
At 0920 GMT (5:20 a.m. EDT), the dollar was at S$1.6215, down
\nfrom S$1.6304 in late trading Tuesday. The U.S. dollar was also
\nat 38.08 baht, down from 38.29 baht late Tuesday. Against the
\nIndonesian currency, the dollar was at Rp 8,750 compared with Rp
\n9,025 late Tuesday.<\/p>\n
However, North Asian currencies such the Korean won and the
\nNew Taiwan dollar succumbed to selling pressure in line with the
\nyen's losses against the dollar Wednesday, said dealers. It is
\nharder for the North Asian currencies to decouple themselves from
\nthe yen because these countries are close competitors to Japan,
\nsaid market players.<\/p>\n
The Singapore dollar emerged as one of the strongest
\ncurrencies in Southeast Asia Wednesday amid continued selling by
\ninvestment houses and funds, said market players.<\/p>\n
Market players also took notice of some of the positive news
\nfrom the Singapore government to bolster the economy, which
\nhelped boost the Singapore dollar, said Derrick Lee, regional
\ncurrencies analyst at MCM Asia Pacific.<\/p>\n
The government plans to introduce a major business cost-
\ncutting package in the next few weeks and officials say the city-
\nstate is determined not to let the Singapore dollar go the way of
\nthe regional currencies simply to gain export competitiveness.<\/p>\n
Similarly, in Indonesia, the dollar broke the psychological
\nsupport level of Rp 9,000 to trade to an intraday low of Rp
\n8,750. Comments by Bank Indonesia Governor Sjahril Sabirin in
\nSingapore at the World Economic Forum was the key factor for the
\nrupiah's rise, said market players.<\/p>\n
Bullish sentiment on the Thai baht also helped the currency
\ngain ground against the U.S. dollar, said market players. They
\nsaid Thailand was faithful in sticking to its IMF program and
\nshould be among the first Asian economies to recover from the
\ncurrent regional slump.<\/p>\n
\"I think we can see 38 baht to the dollar pretty soon,\"
\nbarring any sharp appreciation by the U.S. currency against the
\nyen, a dealer at a local U.S bank branch said.<\/p>\n
Singapore-based market players said they expect the dollar to
\nfall to baht 37 by the end of the year, while London-based
\ndealers expect a drop to baht 35.<\/p>\n
Bucking the trend, the New Taiwan dollar fell Wednesday for
\nthe third straight day as strong commercial demand for the U.S.
\ndollar and outflows of foreign equity funds pulled the local
\ndollar lower, said market players.<\/p>\n
In addition, the weakening yen versus the U.S. dollar added to
\nthe selling pressure, they said.<\/p>\n
At 0800 GMT (4 a.m. EDT), the U.S. dollar ended higher at
\nNT$33.277 in onshore trading, from Tuesday's NT$33.119 close, the
\nthird straight rise after nine consecutive declines. The central
\nbank bought and sold US$150 million Wednesday to smooth some of
\nthe volatility in the market, said traders.<\/p>\n
Similarly, the South Korean won ended lower at 1,350 won to
\nthe U.S. dollar, compared with Tuesday's close of 1,347 won.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-monies-gain-footing-in-active-trading-1447893297",
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