Southeast Asian monies down<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies have started
\nthe Year of the Rabbit on a weaker note on Thursday, after the
\nU.S. dollar pushed dramatically higher against the yen in New
\nYork on Tuesday, when many regional markets were shut for Lunar
\nnew year celebrations.<\/p>\n
At late trading, the dollar was trading at Y118.85, well up
\nfrom Y114.24 in late Asian trading Monday. Thin market liquidity
\nThursday kept the dollar range-bound against the yen and regional
\ncurrencies, traders said, adding that activity would remain muted
\nfor the rest of the week, with Taiwan, Hong Kong and China still
\nclosed for new year's festivities.<\/p>\n
Daniel Lian, head of Asian markets research at ANZ Bank in
\nSingapore, said the Bank of Japan will \"ultimately bow to
\npressure and start underwriting new issuance of JGBs,\" meaning
\nthat the yen will depreciate, perhaps to Y140 to Y150 against the
\ndollar.<\/p>\n
\"The ultimate impact of such a probable yen move, coupled with
\nno further rate cuts from the (U.S. Federal Reserve), must be
\npretty negative for Asian currencies,\" he said. \"In fact, most of
\nthe offshore players we surveyed in the past week indicated that
\nthey expect deliverable Asian currencies to lose between 5
\npercent to 8 percent of spot values against the U.S. dollar.\"<\/p>\n
In late trading, the U.S. dollar was trading at S$1.6980, up
\nfrom $1.6890 late Monday. Traders said the key psychological
\nlevel at S$1.70 would be breached if the U.S. dollar makes any
\nmore gains against the yen.<\/p>\n
The dollar was also trading at 36.93 baht, up from 36.7750
\nbaht late Monday. Traders said the yen's descent has affected the
\nstrength of the baht, although the U.S. currency continues to
\nmove within a wide range-bound band.<\/p>\n
\"The baht shows how the regionals are somewhat impervious to
\nmoves by major currencies,\" said a trader at a U.S. investment
\nbank in Singapore. \"If the U.S. dollar breaks above Y120, then
\nwe'll start to see some moves in the regionals. Right now, the
\nlack of liquidity and closed markets - in Hong Kong and Taiwan -
\nhave created a lag in the market.\"<\/p>\n
The dollar was also trading at 8,775 rupiah, up from 8,635
\nRupiah Monday. Traders expect the U.S. dollar to move between
\n8,500 rupiah and 9,000 rupiah in coming sessions.<\/p>\n
The dollar was also trading at 38.66 pesos on the Philippine
\nDealing System, up from 38.60 pesos late Monday.<\/p>\n
Supple said the peso is fairly valued against the dollar. \"The
\nearly emergence of the Philippine economy from the regional
\nrecession, added to a competitive export sector, highlights the
\nattractiveness of the peso in the region,\" he said. \"While a
\nstronger U.S. dollar will see an upward bias in the dollar-peso,
\nthe one-year, non-deliverable forward rate of around 42 pesos
\nappears an adequate if not attractive risk premium for holding
\npesos.\"<\/p>\n
In North Asia, the dollar was trading at 1,181.8 won, up from
\n1,175.7 won late Monday. The U.S. currency was also at 32.278 new
\nTaiwan dollars, flat since Monday as the market remains closed
\nfor the Chinese New Year holiday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/southeast-asian-monies-down-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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