Yen sets trend for rising regional monies<\/p>\n
SINGAPORE (Dow Jones): The yen again set the trend for
\nSoutheast Asian currencies during local trading hours on
\nWednesday.<\/p>\n
As the Japanese currency rallied in Tokyo, pushing the U.S.
\ndollar lower by one yen, regional currencies trailed the yen
\nhigher.<\/p>\n
The Singapore dollar, the Indonesian rupiah and the Philippine
\npeso all ended Asian trading stronger, but their advances were
\nmodest, with the U.S. currency generally finding support from
\ngood buying interest around its intraday lows.<\/p>\n
The Thai baht ended a touch lower, depressed by a flurry of
\nsales late in the day.<\/p>\n
In North Asian markets, both the South Korean won and the new
\nTaiwan dollar edged higher, parallel with the yen.<\/p>\n
Overall, trading activity in the regional currencies was
\nsubdued. Dealers complained that with the end of the first
\nquarter and the March 31 close of the Japanese fiscal year
\napproaching, few market players are prepared to take fresh
\npositions.<\/p>\n
\"No one wants to get caught in the crossfire if Japanese
\ncorporations still have some window-dressing to do,\" said a
\ntrader at a Thai bank, explaining dealers' reluctance to risk
\ngetting caught on the wrong side of year-end accounting flows.<\/p>\n
Modest customer interest was seen in the Singapore dollar
\nmarket, with traders in the island republic describing good U.S.
\ndollar bids from a Singapore bank around S$1.7280.<\/p>\n
Some dealers identified the demand as one leg of a cross trade
\nin the Australian dollar against the Singapore dollar, which they
\nassociated with the expected acquisition of an A$500 million 50
\npercent stake in Australian airline operator Ansett Holdings Ltd.
\nby Singapore Airlines Ltd.<\/p>\n
The bidding interest provided a firm base for the market
\nthroughout Asian hours, with the U.S. dollar ending local
\ninterbank trading at S$1.7283, down from S$1.7305 the day before.<\/p>\n
Activity in the Thai baht was also subdued, as the market
\ndebated the implications of the Thai government's fiscal stimulus
\npackage, unveiled Tuesday with the blessing of the International
\nMonetary Fund.<\/p>\n
After trading to a low of 37.4300 baht early in the day in
\nline with its move against the yen, the U.S. dollar recovered its
\nlosses late in Asian trading, lifted by buying to cover short
\npositions, according to dealers.<\/p>\n
Late in Asia, the U.S. currency was quoted at 37.5500 baht, up
\nfrom 37.5150 baht late Tuesday.<\/p>\n
The rupiah market paid scant attention to Hubert Neiss, the
\nIMF director responsible for the Asia-Pacific region, who claimed
\nthe Indonesian currency is undervalued.<\/p>\n
\"Over the long run, yes, the rupiah is still over-
\ndepreciated,\" Neiss said in an interview with Dow Jones
\nNewswires. \"(We) always have some idea of what is a reasonable
\nrange. The rupiah is still below that band,\" he said.<\/p>\n
Neiss also moved to scotch market rumors that Indonesia is
\npreparing to introduce capital controls.<\/p>\n
\"Forget about it. They're just rumors,\" he said, explaining:
\n\"The central bank is developing a system of monitoring capital
\nflows, which we think is a very good thing.\"<\/p>\n
There was no reaction in the U.S. dollar\/rupiah exchange rate,
\nwhich ended Asian trading at Rp 8,835, down a touch from Rp 8,910
\nthe previous day.<\/p>\n
In trading on the Philippine Dealing System, the peso followed
\nthe yen higher, with the U.S. dollar dropping to close at 38.695
\npesos, down from 38.760 pesos at Tuesday's close, on trading
\nvolumes of a mere $65.50 million.<\/p>\n
In North Asia the U.S. currency also slipped against the won
\nand the new Taiwan dollar. Against the won the U.S. dollar closed
\nat 1,223.30 won, down from 1,225 won the previous day. Against
\nthe Taiwanese currency, the U.S. dollar closed at NT$33.113,
\ncompared with NT$33.127 at Tuesday's close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/yen-sets-trend-for-rising-regional-monies-1447893297",
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"sponsor": "Okusi Associates",
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