Southeast Asian currencies strengthen<\/p>\n
SINGAPORE (Dow Jones): Just as the rally in Southeast Asian
\ncurrencies was appearing to flag, the Philippine peso took up the
\nbaton, strengthening sharply to hit a six-month high during Asian
\ntrading on Wednesday.<\/p>\n
In what was otherwise a lackluster day for the regional
\nforeign exchange markets, healthy capital inflows lifted the
\nPhilippine peso (PHP) to its highest level in six months, as the
\nU.S. dollar was forced below the psychologically important 39.00
\npeso level for the first time since June 4.<\/p>\n
Although the U.S. currency clawed back some of its losses late
\nin the day, to close a fraction above 40.00 peso, most observers
\nconfidently predicted further gains for the local currency in the
\nrun-up to the end of the year.<\/p>\n
As trading in the local market ended late Wednesday, the U.S.
\ndollar was quoted at 39.020 peso, down from 39.355 peso at the
\nprevious close.<\/p>\n
Elsewhere in Southeast Asia, regional currencies lacked the
\npeso's buoyancy. The Thai baht, so frequently the star of recent
\nsessions, crabbed sideways in a tight trading range throughout
\nthe Asian hours.<\/p>\n
While most investors and traders retain a positive outlook for
\nthe baht, many are nervous of buying into the rally at this late
\nstage. They are afraid that the Bank of Thailand will intervene
\nin the market should the dollar fall below 36.00 baht, selling
\ndown the baht to take the pressure off local exporters.<\/p>\n
Although Bank of Thailand Governor Chatu Mongol Sonakul
\ndeclared on Wednesday that the central bank wasn't attempting to
\nprop up the U.S. currency at the 36.00 baht level, he admitted
\nthat the bank had been buying dollars in the market. The
\npurchases, he said, were aimed at acquiring dollars to settle the
\ncentral bank's outstanding forward contracts, which amounted to
\nUS$7.7 billion late last month.<\/p>\n
Late in Asian trading Wednesday, the U.S. dollar was quoted at
\n36.0300 baht, down slightly from 36.0650 baht late the previous
\nday.<\/p>\n
In general, however, most offshore investors are relatively
\nbullish on the baht. Many are predicting further gains in
\nDecember, with the Financial Sector Restructuring Authority's
\nplanned Dec. 15 auction of $1 billion worth of defunct financial
\ncompanies assets attracting considerable foreign interest.<\/p>\n
Despite the widespread optimism, serious concerns cloud the
\nbaht's outlook. Many analysts point to the failure of Thailand's
\nsixth letter of intent to the IMF, signed on Tuesday, to
\nincorporate an expected commitment to introduce a comprehensive
\nbankruptcy law. The success of Thailand's opposition parties in
\nblocking the measure has severely dented investor confidence,
\nthey say.<\/p>\n
Among other regional currencies, the Singapore dollar finished
\nAsian trading hours lower, after aggressive U.S. dollar buying
\nfrom local banks wiped out the local currency's overnight gains
\nin early trading.<\/p>\n
Like other central banks around the region, the Monetary
\nAuthority of Singapore is widely believed to be intervening in
\nthe foreign exchange market to safeguard domestic export
\ncompetitiveness by moderating any tendency the local currency may
\nhave to appreciate.<\/p>\n
Late Wednesday in Asia, the U.S. dollar was quoted at
\nS$1.6506, up from S$1.6471 late Tuesday.<\/p>\n
In North Asian markets, the U.S. dollar slipped moderately, in
\nparallel with a fall against the yen.<\/p>\n
Against the new Taiwan dollar, the U.S. currency ended
\ndomestic trading at NT$32.420, down from NT$32.438 the previous
\nday. Against the South Korean won, the U.S. dollar ended at 1,238
\nwon, down from 1,245 won at Tuesday's close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/southeast-asian-currencies-strengthen-1447893297",
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