Southeast Asian currencies down in thin trading<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies fell in
\nthin, range-bound trading yesterday, unable to take much
\ndirection from the Japanese yen with Tokyo out on holiday.<\/p>\n
Despite the release of an unexpectedly good June non-oil
\nexports number, the Singapore dollar led regional currencies
\nlower.<\/p>\n
"Most people were caught by surprise," said one trader at a
\nJapanese bank in Singapore.<\/p>\n
"Traders were caught long U.S. dollars on the higher end, and
\nthe dollar came down quite fast after the number was reported,"
\nhe said. The trader added that continuing bearish rumors then
\npushed the U.S. dollar up against the Singapore dollar once
\nagain.<\/p>\n
One rumor making the rounds out of London is that the Sultan
\nof Brunei had asked the Bank of England to help him track down
\nmillions of dollars missing from state and family coffers in the
\nSultanate. Brunei maintains a one-for-one exchange rate between
\nthe Brunei dollar and the Singapore dollar.<\/p>\n
A trader at a British bank said rumors that the Monetary
\nAuthority of Singapore would devalue the currency, first heard
\nover the weekend in New York, were still weighing on the
\nSingapore dollar in the afternoon<\/p>\n
"It is extremely unlikely (that the MAS would devalue), but
\nthe rumor is out there in the market," he said.<\/p>\n
In late Asian trading, the U.S. dollar is quoted at S$1.7005,
\nup from S$1.6925 late on Friday.<\/p>\n
A trader at a French bank in Singapore said the Singapore
\ndollar may have a bit more room to strengthen.<\/p>\n
"The market is still long, so the U.S. dollar may come a bit
\nlower to S$1.6900," the trader said.<\/p>\n
Winston Koh, market strategist for JP Morgan in Singapore,
\nsaid trading in regional currencies is likely to remain thin
\nuntil Japan picks a new leader on Friday.<\/p>\n
Prime Minister Ryutaro Hashimoto resigned last week to take
\nresponsibility for the ruling party's losses in elections to the
\nupper house of Parliament, and a new leader is expected to be
\nchosen Friday.<\/p>\n
People are still taking a wait-and-see attitude towards
\nelections in Japan," Koh said. "Few are inclined to take
\naggressive positions in the regional currencies."<\/p>\n
Koh said that, over the medium term, weakness in the regional
\ncurrencies is more likely than strength, based on fundamentals in
\nSoutheast Asian economies.<\/p>\n
"If the new government in Japan doesn't act quickly, Asian
\ncurrencies will weaken. If it does act, Asian currencies may not
\nweaken as fast, but the trend is for some weakness due to
\nfundamentals," Koh said.<\/p>\n
In late Asian trading,, the U.S. dollar was quoted at 4.1200
\nringgit, up from 4.0925 ringgit late trading Friday.<\/p>\n
The Thai baht strengthened late in Asian trading Monday,
\ntracking the Singapore dollar, dealers said. The greenback is
\nquoted at 40.9650 baht, down from 41.1250 baht late Friday in
\nAsia.<\/p>\n
On the Philippine Dealing System, the peso gained against the
\ndollar in line with the baht. The U.S. dollar finished the day at
\n41.845 pesos, down from 42.360 pesos at close of business on
\nFriday.<\/p>\n
The Indonesian rupiah ended a volatile yesterday little
\nagainst the dollar reaching almost 14,450 rupiah, compared with
\n13,350 late on Friday.<\/p>\n
"The rupiah is driven by very thin flows in the market," said
\nJP Morgan's Winston Koh. "Dollar sales seen last week by
\nIndonesian banks has eased, so the rupiah is going back to where
\nit was before."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/southeast-asian-currencies-down-in-thin-trading-1447893297",
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