Asian currencies down on yen slide and Indonesian politics<\/p>\n
SINGAPORE (Dow Jones): A surge in the U.S. dollar to a four-
\nand-a-half month high against the yen pushed Asian currencies
\nlower late Wednesday.<\/p>\n
The U.S. currency rose above Y109.00 for the first time since
\nmid-September on concerns that Japan's burgeoning fiscal deficits
\nhaven't stimulated domestic demand sufficiently to ensure a self-
\nsustaining recovery. An expected interest rate rise in the U.S.
\nlater Wednesday also helped the dollar.<\/p>\n
Fitch IBCA, an international ratings agency, says there would
\nhave to be concern about Japan's credit outlook if large budget
\ndeficits persist. Fitch downgraded Japan's long-term foreign
\ncurrency rating in September 1998.<\/p>\n
Concerns over the political climate in Indonesia are also
\nweighing on regional currencies, particularly the Indonesian
\nrupiah and Singapore dollar, as a showdown looms between
\nIndonesian President Abdurrahman Wahid and Coordinating Minister
\nfor Political Affairs and Security General Wiranto.<\/p>\n
Wahid, who is in Europe for meetings with political and
\nbusiness leaders, Tuesday again called for Wiranto to quit his
\nCabinet post after a government report blamed him and other top
\nofficers for atrocities in East Timor last year.<\/p>\n
Wiranto, who attended a Cabinet meeting Wednesday in Jakarta,
\ncontinues to ignore calls for his resignation, which some
\nobservers interpret as a signal he will defy Wahid. This would
\nadd to tension between the administration and disgruntled
\nelements of the military, and has sparked talk of a possible
\nmilitary coup, although Wahid dismissed such speculation as
\n\"hogwash.\"<\/p>\n
However, the rupiah's failure to rally on confirmation the
\nConsultative Group for Indonesia will help fund Jakarta's fiscal
\nyear 2000-01 budget deficit with up to US$4.7 billion in new
\nloans shows the level of concern in financial markets. The CGI
\ncomprises Indonesia's main international donors.<\/p>\n
In late Asian trade, the dollar was quoted at Rp 7,520, up
\nslightly from Rp 7,450 late Tuesday, while Jakarta stocks again
\nlost ground, defying another strong night on Wall Street. The
\nJakarta Composite late in the day was down 2.1 percent at 603.69,
\nextending its losses since Monday's close to more than 5 percent.<\/p>\n
The Singapore dollar was weaker against its U.S. counterpart
\nin line with the decline in the rupiah.<\/p>\n
But most traders and analysts believe the Singapore currency
\nis a value buy against the U.S. dollar above S$1.7000 as the
\nMonetary Authority of Singapore in the second half of 2000 may
\nlook to tighten monetary policy through a stronger exchange rate.
\nMany are forecasting a move under S$1.6000 by the year end.<\/p>\n
The U.S. currency was quoted against the Singapore dollar at
\nS$1.6985 late in the day, up from S$1.6955 at Tuesday's close.<\/p>\n
The South Korean won suffered heavy losses Wednesday in line
\nwith the weaker yen.<\/p>\n
Buying of dollars by the state-run Korea Development Bank
\npushed the won to a brief intraday low of 1,134 won. Late in the
\nday the dollar was at 1,130.5 won, up from 1,126.6 won at
\nTuesday's close.<\/p>\n
Authorities in recent sessions have used yen weakness to help
\npush the won lower, and thereby keep South Korean export prices
\ncompetitive with those of Japan.<\/p>\n
Elsewhere, the U.S. currency was at 37.560 Thai baht, up from
\n37.505 baht previously. In Taipei, the dollar was higher against
\nthe New Taiwan dollar, quoted at NT$30.767 from NT$30.699 a day
\nearlier. The Philippine peso late Wednesday was at 40.640 pesos
\nagainst the U.S. dollar from 40.572 pesos at Tuesday's close.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-down-on-yen-slide-and-indonesian-politics-1447893297",
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