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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (517)	1/6/1998 8:12:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9980

Sankar, Thanks for the post. <<China will take steps to ensure its foreign exchange market remains stable but will not devalue the yuan, foreign ministry spokesman Shen Guofang said.>> I suspect the comments from Shen will cause some small sense of relief among the powers in Asia that are wrestling with their economic problems. Competition from China played a non-trivial role in the growing of an account defecit among these countries. A devalued yuan may have sharpened that competition just when SE Asia needed to reemphathize export growth.

To: Rational who wrote (517)	1/7/1998 2:30:00 AM
From: Rational	Read Replies (1) \| Respond to of 9980

Dollar lower against yen in midafternoon Tokyo trade TOKYO (AFX-ASIA) - The dollar was lower against the yen in midafternoon Tokyo trading, pressured by continued profit taking, dealers said. Profit taking continued as investors saw the strong upside resistance earlier, they said. "But, the dollar's upside resistance was confirmed to be strong at around 134.40 yen this morning, investor interest to test the upside faded," a credit bank dealer said. Emerging caution over the possibility of joint intervention by Japan and the U.S. also discouraged investors from turning active buyers of the dollar, dealers said. "Caution over joint intervention by Japan and the U.S. is growing stronger by (Vice Finance Minister for international affairs Eisuke) Sakakibara's visit to the U.S.," one city bank dealer said. "Considering Southeast Asain currencies, some of which are falling sharply today, I cannot say the possibility of the joint intervention is low." "As long as there is the possibility of joint intervention, investors have to be more cautious over buying the dollar." However, investors remain reluctant to actively sell the dollar due to caution over the possible active selling of the yen which could be triggered by ongoing sharp declines of Southeast Asian currencies, dealers said. Against the mark, the dollar was lower on continued profit taking, dealers said. However, the dollar is unlikely to continue falling from current levels due to easing caution over the recent continued mark's declines against the dollar after Bundesbank chief economist Otmar Issing failed to comment directly on the recent declines of the mark against the dollar during a visit to New York overnight, dealers said. AFN

To: Rational who wrote (517)	1/14/1998 9:07:00 AM
From: Thomas Haegin	Read Replies (2) \| Respond to of 9980

Sankar, on china not devaluating the Yuan, you reposted: << China to keep forex market stable but no yuan devaluation: Shen Guofang >> FWIW, Mobius said during the presentation in Zurich from before x-mas that he's on Red Alert whenever he hears an official say "Our currency will not be devaluated." He went on to say that his opinion until some days ago was that, indeed, the Yuan will not be devaluated, but just before coming to Zurich, he heard above ominous statement from one of his sources... So this is why he was not so sure anymore about China. Of course, just an opinion. Let's see then. Still FWIW, Moody's in their conference of some days ago, also said that for now China is still fine, but there is this potential threat of devaluation to keep chinese exports competitive. Therefore, they also had rather little confidence in China for the moment. Thomas