Asian currencies close mixed late as rupiah ends lower<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies were weaker
\nFriday as investors expressed caution over political developments
\nand the pace of corporate restructuring in the region.<\/p>\n
The Philippine peso was the exception, closing marginally
\nhigher despite continued selling pressure.<\/p>\n
Political turmoil is taking its toll on markets in Thailand,
\nTaiwan, Indonesia and the Philippines because it continues to
\ndivert attention from necessary structural reforms, analysts
\nsaid.<\/p>\n
The Indonesian rupiah closed lower Friday on dollar demand and
\nfears of rising social conflict after a blast in Jakarta.<\/p>\n
The dollar closed at Rp 9,383 in Asia, up from Rp 9,348 late
\nThursday.<\/p>\n
The dollar fell to an intraday low of Rp 9,333 on dollar
\nselling by state banks, but rebounded to an intraday high of Rp
\n9,395 after news of an explosion in a hotel in central Jakarta
\nhit the market.<\/p>\n
The U.S. currency retreated from its intraday high as the
\nexplosion caused only minor damage, dealers said.<\/p>\n
Elsewhere in the interbank money market, the overnight
\ninterbank rate rose to 11.75 percent late Friday from 11 percent
\nThursday as Bank Indonesia introduced a new \"real time gross
\nsettlement\" system. Unfamiliarity with the new clearing system
\nmade banks hold on to excess funds, dealers said.<\/p>\n
\"It's quite difficult to find rupiah funds in the money market
\ntoday,\" said a dealer. \"There were no offers, all bids.\"<\/p>\n
Bank Indonesia, however, claimed that clearing activities ran
\nsmoothly Friday.<\/p>\n
Taiwan and South Korea face additional pressure from investor
\nanxiety over the financial stability of debt laden companies, as
\nwell as the recent selloff in technology stocks.<\/p>\n
An overnight plunge in the technology-heavy Nasdaq Composite
\nIndex dealt a blow to South Korean stocks and pushed the won to a
\n10-month low.<\/p>\n
The dollar closed at 1,141.80 won, up from 1,138.30 won
\nThursday. It was the dollar's highest close since Jan. 12, when
\nit ended at 1,144.50 won.<\/p>\n
The Philippine peso edged higher, but remained at the weaker
\nend of its recent trading range as impeachment proceedings
\nagainst President Joseph Estrada progressed.<\/p>\n
At the close of trading the dollar was quoted at 49.860 pesos,
\ndown slightly from 49.890 pesos late Thursday.<\/p>\n
Estrada's impeachment trial on corruption charges is scheduled
\nto begin in the Senate Dec. 1. Analysts said the market would
\nwelcome an Estrada conviction, but added sentiment toward the
\npeso will remain bearish in the near-term due to the uncertainty
\nsurrounding the outcome of the trial.<\/p>\n
The Thai baht was dealt a double blow from uncertainty over
\nthe upcoming general election and concerns over a delay in the
\ndebt workout plan of Thai Petrochemical Industry.<\/p>\n
Near the end of Asian trading the dollar was quoted at 44.605
\nbaht, up from 43.865 baht late Thursday.<\/p>\n
The New Taiwan dollar ended lower for the fourth straight
\nsession. The U.S. dollar closed at NT$32.237, compared with
\nThursday's close of NT$32.196.<\/p>\n
Heightened worries about problem loans in the banking sector,
\nand ongoing concerns about the viability of President Chen Shui-
\nbian's administration, continue to weigh on the currency, DBS
\nBank said in a research report.<\/p>\n
The Singapore dollar surrendered its intraday gains to trade
\nlower against the U.S. dollar.<\/p>\n
Late in Asian trading the dollar was quoted at S$1.7498, up
\nfrom S$1.7482 late Thursday.<\/p>\n
Dealers said the currency's decline attracted local companies
\nto start buying U.S. dollars at around S$1.7465, which helped it
\nrecover the bulk of its intraday losses.<\/p>",
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