SE Asian Currencies Slip Early; Little
Interest To Trade HK$
Dow Jones Newswires
SINGAPORE -- Southeast Asian currencies are for the most part a touch
lower against the U.S. dollar in early trading Monday than at the close of
Asian trading Friday. But the easing reflects a rally in the U.S. dollar
against the major currencies in European and U.S. trading hours Friday,
rather than any clear interest to sell the regional currencies, say traders.
'It's as quiet as a graveyard here,' commented one trader at a Dutch bank
in Singapore, saying that most market players are sitting on the sidelines.
With Hong Kong market participants absent for a holiday, liquidity in
regional markets is relatively thin, say traders.
Rumors last week that hedge funds and proprietary trading desks would
attempt to take advantage of Hong Kong's closure Monday to launch a
renewed assault on the Hong Kong dollar's link to the U.S. dollar have so
far proved unfounded.
Activity in the offshore spot market is almost non-existent, while the U.S.
dollar appears offered rather than bid in the forwards, say traders.
'The focus is on Russia, but that isn't going to affect anything until later in
the day,' said the head of regional currencies at a Hong Kong bank in
Singapore. Most market participants are waiting to see how Russia's
financial stability influences major markets before assuming new positions
in Asian regional currencies, he said.
At 0140 GMT (9:40 p.m. Sunday EDT) the U.S. dollar was quoted at
HK$7.7500, just a fraction higher than HK$7.7495 late in Asia on Friday. |
