SE Asian monies stronger against greenback<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies ended local
\ntrading hours Tuesday stronger against the U.S. dollar, lifted by
\nhealthy flows of foreign funds into domestic asset markets.<\/p>\n
In Southeast Asia, both the Singapore dollar and the
\nPhilippine peso edged upward, while the baht crept a fraction
\nhigher in offshore trading thinned by the closure of the Bangkok
\nmarket for a public holiday.<\/p>\n
The Indonesian rupiah ended barely changed, despite the news
\nthat the World Bank had withheld US$600 million in assistance
\nfunding.<\/p>\n
In North Asia, the South Korean won overcame government-
\ndirected selling to close at its highest level against the U.S.
\ndollar in three weeks. The new Taiwan dollar, too, ended a touch
\nhigher.<\/p>\n
Singapore's buoyant stock market continued to attract foreign
\ninvestment, helping to lift the local currency.<\/p>\n
As the U.S. dollar was forced down through the S$1.7250 level,
\na number of offshore players were stopped out of the long U.S.
\ndollar positions they had assumed the previous week, pushing the
\nU.S. currency lower still.<\/p>\n
Late in Asian trading, the U.S. dollar was quoted at S$1.7232,
\ndown from S$1.7263 late the day before.<\/p>\n
Fund inflows were also credited with lifting the Philippine
\npeso against the U.S. dollar. At the close of trading on the
\nPhilippine Dealing System, the U.S. currency was quoted at 38.295
\npesos, down from 38.440 pesos at Monday's close.<\/p>\n
With the domestic market in Bangkok closed Tuesday for
\nThailand's three-day Songkran Festival holiday, offshore trading
\nin the baht was quieter than in recent days.<\/p>\n
Although dealers in Singapore reported some U.S. dollar offers
\ntaken above the 38.00 baht level in early trading, the U.S.
\ncurrency drifted lower over the course of the Asian day to end
\noffshore trading at baht 37.9150, down from 38.0250 the day
\nbefore.<\/p>\n
After it hit a six-month high of 38.01 baht Monday, the U.S.
\ncurrency is likely to be bought up to levels around 38.40 before
\nprofit-taking sets in, according to one baht dealer in the
\noffshore market.<\/p>\n
Elsewhere, the Indonesian rupiah market remained in the
\ndoldrums. News that the World Bank had held back $600 million of
\nassistance funding, fearing it might end up in the pockets of
\nofficials responsible for its disbursement, had little impact on
\nthe currency.<\/p>\n
Remarks made by Bank Indonesia director Miranda Goeltom, who
\nsaid that rupiah interest rates will continue to fall this week,
\nwere also ignored as dealers continued to shun the market.<\/p>\n
With few players willing to participate, dollar offers from
\nstate banks in Jakarta were sufficient to cap the U.S. currency,
\nsaid traders.<\/p>\n
Late in Asian dealing the U.S. dollar was quoted at Rp 8,735,
\nflat compared with Rp 8,730 the previous day.<\/p>\n
In North Asia, the South Korean won strengthened markedly on
\nforeign fund inflows as premiums in the U.S. dollar\/won forwards
\nmarket collapsed to levels close to par.<\/p>\n
The U.S. dollar sales were heavy enough to cause Korea's
\nstate-run Export-Import Bank to cease bidding for U.S. dollars at
\n1,223 won, the level at which it has supported the U.S. currency
\nin recent days, allowing the won to strengthen.<\/p>\n
\"It looks as if Exim Bank has shifted its bid lower,\" said one
\ntrader, as the U.S. dollar dropped to close at 1,221.70 won, down
\nfrom 1,223.10 Monday.<\/p>\n
Selling pressure is likely to push the U.S. dollar lower still
\nover coming sessions, predicted the trader, who added: \"If it
\nwasn't for Exim Bank, the won would be a lot stronger now.\"<\/p>\n
The new Taiwan dollar also benefited from fund inflows on
\nTuesday, with the U.S. currency slipping to close at NT$33.000,
\ndown from NT$33.010 the previous day.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-monies-stronger-against-greenback-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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