Asian currencies dither on RI package<\/p>\n
SINGAPORE (Reuters): Indonesia's announcement of a long-
\nawaited IMF assistance plan gave the rupiah a slight boost on
\nFriday, but dealers said enthusiasm was capped by the absence of
\nthe most keenly sought component -- a dollar amount.<\/p>\n
Indonesian Finance Minister Mar'ie Muhammad said growth would
\nfall over the next two years due to reduced economic activity,
\nbut was expected to rise again in 1999\/2000.<\/p>\n
He said the government aimed to reduce the current account
\ndeficit to less than 3 percent of gross domestic product within
\ntwo years, to keep inflation at single-digit levels and reduce
\nimport duties on key commodities.<\/p>\n
The program led by the International Monetary Fund (IMF) would
\nbe implemented over three years and the amount of help would be
\nannounced individually by each donor, he said.<\/p>\n
Dealers and analysts were upbeat in their initial assessment
\nof the package.<\/p>\n
\"It looks like Indonesia is serious about conforming to the
\nIMF measures,\" said the head of regional currencies at a European
\nbank in Singapore.<\/p>\n
\"Overall, the package should restore some confidence in
\nIndonesia but we'll have to see what the breakdown and the total
\namount is,\" he said. \"I think the rupiah's strengthening should
\nbe limited to 3,500.\"<\/p>\n
The rupiah firmed to 3,580 to the dollar on the back of the
\nnews, from levels of around 3,625 earlier and a low of 3,685. But
\nJakarta stocks lost 0.49 percent to end at 500.42 points.<\/p>\n
Other Southeast Asian currencies were largely unmoved by
\nIndonesia's news, firming off their earlier lows on pre-weekend
\nposition squaring.<\/p>\n
The embattled baht showed no sign of halting its slide as
\nworries about Thailand's political problems and a mixed bag of
\neconomic data provided little respite.<\/p>\n
The baht was at new record lows of 41.10\/30 to the dollar
\nonshore at 0950 GMT against 40.70\/90 five hours earlier. It was
\nat 40.50\/70 offshore against 40.28\/38.<\/p>\n
Dealers said Bangkok's failure to implement financial reforms
\nannounced more than two weeks ago unleashed fears that Thailand
\nmay have trouble meeting conditions for the IMF's $17.2 billion
\nloan package.<\/p>\n
\"They're still not pulling their act together. So they've had
\na cabinet reshuffle, but what sort of powers do the new guys
\nhave? So far we haven't seen anything,\" said a senior regional
\ncurrencies dealer in Singapore.<\/p>\n
Bangkok dealers said Thai companies and importers piled into
\nthe dollar heavily after it breached the 40.00 baht level in
\nearly trade.<\/p>\n
The Malaysian ringgit firmed to 3.4120\/220 to the dollar from
\n3.4300\/400 earlier but activity was subdued with many
\nparticipants out for a long weekend after Thursday's holiday for
\nthe Hindu festival of Deepavali.<\/p>\n
The Philippine peso ended an abbreviated trading session lower
\nat 35.42 to the dollar against Thursday's 35.03.<\/p>\n
Manila traders said the central bank's half-hearted defense of
\nthe peso did little to bolster sentiment as the Thai baht charted
\nfresh depths.<\/p>\n
The Hong Kong dollar was relatively steady at 7.7310\/30 to the
\nU.S. dollar and forwards came off sharply as the stock market
\nrebounded to close 2.52 percent up at 10,623.78, wiping out a
\nnear four percent loss in early trade.<\/p>\n
The South Korean won showed a slightly healthier tone as
\nfinance ministry measures to curb speculation helped prop it up
\nafter five consecutive days of record lows.<\/p>\n
The central bank's dollar sales at the 965.00 won level in
\nearly trade also helped cushion the won's fall, dealers said. The
\nwon ended at 964.60 against Thursday's 964.80 close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-dither-on-ri-package-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}