Voodoo Vince

S$, RM, baht hit new decade highs

SINGAPORE - ASIAN currencies rose against a broadly weak dollar on Wednesday amid expectations of further US interest rate cuts, with the Singapore dollar, Malaysian ringgit and Thai baht hitting fresh decade highs.

The Singapore dollar hit a fresh 11-year high at 1.4011 per US dollar, approaching important 1.4 level.

A trader said she expected the Singapore dollar to move between 1.4010 and 1.4030 for the day, and cautioned about likely efforts by the central bank to defend the 1.4 level.

The Thai baht , Asia's best performer this year, briefly hit 32.17 per dollar, up almost 0.3 per cent from late Asian trade on Tuesday to its highest since August 1997.

'The dollar/baht is still heavy from exporters' dollar sales plus expectations about lifting capital controls,' said a trader in Bangkok.

Investors believe the government will scrap capital controls imposed in late 2006, which were designed to curb currency rises to protect local exporters, in coming weeks.

The onshore baht has gained nearly 4.7 per cent so far this year, after a 7 per cent rise in 2007.

The Bank of Thailand is widely expected to keep its policy interest rate steady at 3.25 per cent later in the day.

The Thai rate - the lowest in emerging Asia, is higher than the US fed funds rate, which has fallen rapidly to 3 per cent.

Meanwhile, the Malaysian ringgit rose as far as 3.204 per dollar, up 0.3 per cent to its highest since late 1997.

The dollar hit an all-time low against a basket of currencies after weak economic data and comments from a Fed official signalled that US interest rates will continue to head lower.

Fed Vice Chairman Donald Kohn said on Tuesday that a weak US economy was a bigger worry than higher inflation risks.

Meanwhile, the Indonesian rupiah hit 9,037 per dollar, up almost 0.6 per cent from late Asian trade on Tuesday.

'Unless there is another wave of inflows today, the rupiah should retrace a bit,' said a trader in Jakarta.

'I think the 9,000 level should be a stronger support for the dollar if 9,030 breaks,' he said. -- REUTERS

http://www.straitstimes.com/Latest%2...ry_210967.html

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People don't plan to fail... They fail to plan.

Voodoo Vince

Do you think it will rise higher?

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People don't plan to fail... They fail to plan.

winni12

too high is not good for singapore

Voodoo Vince

But shoppers like them. Can buy things cheaply from USA.

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People don't plan to fail... They fail to plan.