Yen's rebound drives Asian currencies<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies snapped back
\nfrom Tuesday's lows during Asian trading on Wednesday, boosted by
\nthe yen's rebound against the U.S. dollar.<\/p>\n
The dollar slipped against the yen as investors took profits
\non the greenback's earlier sharp gains against the Japanese
\ncurrency, dealers said.<\/p>\n
At late trading, the dollar was trading at 121.11-14 yen, down
\nfrom 122.34 yen in New York and 122.31-34 yen here late Tuesday.<\/p>\n
Caught short in the regional currencies by the U.S. dollar's
\nretreat, interbank traders scampered to cover their positions,
\npushing the Singapore dollar, the Thai baht and the Philippine
\npeso upwards to end Asian hours higher against the U.S. currency.<\/p>\n
North Asian currencies benefited too, as the new Taiwan dollar
\nand the South Korean won both regained ground lost in recent
\ndays. The Indonesian rupiah also rose.<\/p>\n
\"Asian regional currencies are closely tracking the yen, and
\nthe yen's exchange rate is a reflection of where we stand in the
\nglobal deleveraging process,\" said Prasenjit Basu, Singapore-
\nbased regional economist at Credit Suisse First Boston. Swings
\nboth in the yen and in the regional currency exchange rates,
\nexplained Basu, are being determined largely by market
\nexpectations of the timing of further cuts in U.S. interest
\nrates.<\/p>\n
But while attention will continue to focus on the Fed's
\nmeeting next Tuesday, regional currencies will still find
\nsupport, whatever the decision on interest rates, according to
\nsome analysts.<\/p>\n
After opening sharply higher, the Singapore dollar advanced
\nfurther through the course of the day, with the U.S. dollar
\ndropping to end Asian trading hours at S$1.6495, down steeply
\nfrom S$1.6605 a day previously.<\/p>\n
The Thai baht also ended higher after sales of the U.S. dollar
\nby market players looking to exit long positions in the U.S.
\ncurrency triggered successive stop-loss orders, which in turn
\npushed the baht higher still.<\/p>\n
As interbank trading in the Singapore market wound down, the
\nU.S. dollar had slipped to 36.70 baht, down from 37.19 at the
\nsame time the day before.<\/p>\n
The Philippine peso, too, ended higher, boosted by the yen's
\nbounce.<\/p>\n
At the close of trading on the Philippine Dealing System, the
\nU.S. dollar was quoted at 40.57 pesos (PHP), down from PHP41:00
\nat the end of Tuesday's session.<\/p>\n
Most market participants remain bullish on the peso, saying
\nforeign direct investment and remittances from expatriate
\nFilipinos will bolster the currency over the coming months.<\/p>\n
Although an end to Indonesia's political transition may seem
\ndistant, this week's meeting of the People's Consultative
\nAssembly, which is tasked with drafting new electoral laws, is
\none of the biggest hurdles to be overcome, according to Basu at
\nCSFB.<\/p>\n
\"If the Assembly can come up with a set of rules that all the
\npolitical parties find acceptable, it will become worth
\nconsidering the rupiah's potential up side,\" said Basu at CSFB.<\/p>\n
Late in Asia on Wednesday the U.S. dollar ended at Rp 7,687
\nrupiah, down from Rp 8,075 late the day before.<\/p>\n
Meanwhile in North Asia, the U.S. currency ended trading
\nagainst the new Taiwan dollar at NT$32.681, down from NT$32.766
\nat Tuesday's close. Against the won, the U.S. dollar closed at
\n1,315.70 won, down from 1,318 won the day before.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/yens-rebound-drives-asian-currencies-1447893297",
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