SE Asian monies sustain upward trend to U.S. dollar<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies sustained
\ntheir recent upward trend against the U.S. dollar through Asian
\ntrading hours on Tuesday, as position unwinding and expectations
\nof a cut in U.S. interest rates further undermined pro-dollar
\nsentiment.<\/p>\n
The Singapore dollar gained the most ground, with the U.S.
\ncurrency dropping steeply at one point, to fall below S$1.6800
\nfor the first time in over two months.<\/p>\n
Elsewhere in the region, the baht, the Philippine peso and the
\nrupiah all edged higher, while, in North Asia, the won and the
\nNew Taiwan dollar also strengthened.<\/p>\n
The market's near-universal belief that the U.S. Federal Open
\nMarket Committee would cut U.S. interest rates at its meeting
\nlate Tuesday was broadly cited as contributing to Asian
\ncurrencies' new-found strength.<\/p>\n
But a more influential factor, according to some traders, was
\nthe ongoing liquidation of long-U.S. dollar positions.<\/p>\n
Selling of U.S. dollars by U.S. investment banks in Hong Kong,
\non behalf of funds seeking to cut back their positions against
\nthe Singapore dollar, proved instrumental in forcing the
\nSingapore currency up through key resistance levels, said
\ntraders.<\/p>\n
Late in the Asian day, the U.S. dollar was quoted at S$1.6770,
\ndown steeply from S$1.6959 late Monday.<\/p>\n
Traders and analysts were divided over how long the Singapore
\ndollar can continue its rally, however. While some argued that
\nthe local currency would slip back in the fourth quarter of the
\nyear, others maintained that the Singapore dollar would remain
\nrelatively stable for the rest of the year.<\/p>\n
\"I'm still looking for the U.S. dollar to recover, as the
\nhedge-fund liquidation process abates into the new quarter,\" said
\nRon Leven, foreign-exchange strategist at J.P. Morgan in
\nSingapore.<\/p>\n
As traders attempt to boost their battered returns ahead of
\nthe year's end, said Leven, they will return to the tried and
\ntrusted trades that have consistently made them money - short yen
\nand short Singapore dollar - forcing the Singapore currency lower
\nonce again.<\/p>\n
Other market participants are not so sure.<\/p>\n
Among other regional currencies, the baht continued to edge
\nhigher, with the U.S. dollar slipping to end Asian trading at
\n39.0250 baht, down from 39.1200 baht Monday.<\/p>\n
Following the baht's impressive strengthening over recent
\nsessions, some analysts question whether the Bank of Thailand
\nwill tolerate further appreciation.<\/p>\n
The Philippine peso also ended Tuesday higher, following the
\nPhilippine central bank's announcement that it would raise the
\nstatutory reserve requirement of commercial banks by two
\npercentage points, to 10 percent, from Friday.<\/p>\n
At the close of trading on the Philippine Dealing System, the
\nU.S. dollar was quoted at 43.84 pesos, down from 43.94 at the
\nprevious close.<\/p>\n
The rupiah also ended the day higher, as local-market
\nparticipants continued to anticipate inflows of pledged
\nassistance funds. Toward the end of Asian dealing, the U.S.
\ndollar was quoted at 10,613 rupiah, down from 10,913 rupiah at
\nthe same time Monday.<\/p>\n
In North Asian markets, both the won and the New Taiwan dollar
\nended higher, in line with a rise in the yen against the dollar.
\nThe won was also boosted by news early in the day that mass
\nstrikes of banking-sector workers had been called off.<\/p>\n
At the close of domestic trading, the U.S. dollar was quoted
\nat 1,371.50 won , down from 1,382.50 won at the previous close.
\nInterest-rate cuts by Taiwan's central bank had little effect on
\ntrading in the local currency, as the authorities maintained
\ntheir interventionist stance in the foreign-exchange market, both
\nas buyers and sellers.<\/p>\n
At the close of domestic trading, the U.S. dollar was quoted
\nat NT$34.482, down from NT$34.557 on Monday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-monies-sustain-upward-trend-to-us-dollar-1447893297",
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