U.S. dollar continues rally in Asia<\/p>\n
Dow Jones, Singapore<\/p>\n
Most Asian currencies weakened Wednesday as the embattled
\ndollar continued to show signs of stabilizing from its recent
\nslump in global markets.<\/p>\n
Local factors also played a role, with the Indonesian rupiah
\nsuffering from another bad day in the stock market and the
\nPhilippine peso succumbing to renewed concerns over the country's
\nbudget deficit.<\/p>\n
The Thai baht, South Korean Won and New Taiwan dollar also
\nweakened, while the Singapore dollar strengthened.<\/p>\n
The U.S. currency drew support from its solid performance
\nagainst the yen and euro for the third straight session.<\/p>\n
A rare warning from Japan's prime minister that the monetary
\nauthorities will continue intervening in foreign exchange markets
\nto cap the yen's strength against the dollar underpinned the U.S.
\ncurrency.<\/p>\n
\"We are watching markets closely,\" Junichiro Koizumi told
\nmembers of Parliament. Koizumi rarely comments on foreign
\nexchange.<\/p>\n
He added that Japanese officials are in \"close contact\" with
\ntheir U.S. and European counterparts on exchange rate policy. The
\nMinistry of Finance intervened Friday in currency markets
\noverseas through the U.S. Federal Reserve and the European
\nCentral Bank.<\/p>\n
Most analysts say the dollar's rally over the past few days
\nisn't sustainable because the fundamental reasons for selling the
\ncurrency -- poor performing U.S. stocks, concerns over corporate
\naccounting problems, and the widening current account deficit --
\nhaven't changed.<\/p>\n
The won tracked the yen lower, continuing its recent pattern
\nof mirroring moves in the Japanese currency.<\/p>\n
The dollar closed at 1,207.8 won, up from 1,205.8 won at
\nTuesday's close.<\/p>\n
The Bank of Korea is expected to hold rates steady at its
\npolicy meeting Thursday after last raising rates in May to head
\noff the threat of inflation. The recent appreciation of the won
\nhas effectively done some of the BOK's work by curbing imported
\ninflation.<\/p>\n
The peso recovered from early losses, but still finished the
\nsession marginally weaker.<\/p>\n
Some traders said comments from the central bank that the
\nmarket was overreacting to budget deficit worries prompted some
\nbanks to reduce their excess holdings of dollars.<\/p>\n
The dollar closed at 50.740 pesos on the Philippine Dealing
\nSystem, up slightly from 50.730 pesos Tuesday. It hit an intraday
\nhigh of 50.860 pesos.<\/p>\n
The government data show the budget deficit in the five months
\nto May totaled 107.5 billion pesos, exceeding the target of 78.2
\nbillion pesos for the first six months because of weak revenues.<\/p>\n
U.S. dollar short covering dealt a blow to the New Taiwan
\ndollar.<\/p>\n
The U.S. dollar closed at NT$33.595, compared with NT$33.585 a
\nday earlier.<\/p>\n
Banks opted to cover their short U.S. dollar positions against
\nthe New Taiwan dollar after the yen weakened, dealers said.<\/p>\n
Continued equity flows out of Indonesia weighed on the rupiah.<\/p>\n
The dollar hit an intraday high at Rp 8,990 before closing
\nAsian trade at Rp 8,965, still above Rp 8,815 at Tuesday's
\nfinish.<\/p>\n
The baht lost ground on dollar short covering by offshore
\nplayers. However, dollar sales by corporations provided support
\nto the baht.<\/p>\n
Near the end of Asian trading the dollar was quoted at 41.610
\nbaht, up from 41.530 baht late Tuesday.<\/p>\n
The Thai finance minister echoed recent comments by the
\ncentral bank governor, saying he wasn't concerned about the
\nimpact of the baht's recent strength on exports because the
\ncurrency was appreciating in tandem with its regional peers.<\/p>\n
The Singapore dollar benefited as some interbank market
\nparticipants sold U.S. dollar positions and took profit after a
\nmodest recovery by the U.S. currency.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1.7715, down from
\nS$1.7730 late Tuesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-dollar-continues-rally-in-asia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}