Asian currencies higher, rupiah gains ground on reform hopes<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were higher across the
\nboard Friday with the rupiah gaining ground on optimism that
\nIndonesia will be able to meet a weekend deadline for economic
\nreforms sought by the International Monetary Fund.<\/p>\n
Indonesia missed the IMF's original March 31 deadline,
\ntriggering a wholesale rupiah selloff earlier this week. This led
\nthe rupiah to fall to its lowest level in six months as the U.S.
\ndollar climbed through the Rp 7,800 level.<\/p>\n
Friday's recovery saw the dollar briefly fall below 7,640
\nrupiah in intraday trading before edging back up at the close.<\/p>\n
Toward the end of Asian trading Friday, the dollar was quoted
\nat Rp 7,663, down from Rp 7,785 in thin, offshore trading
\nThursday. There was no local trading Thursday as Indonesian
\nmarkets were closed for a holiday.<\/p>\n
\"Some market participants are more optimistic that Indonesia
\nwill not spoil its second chance and will meet the reform
\ndeadline,\" said Syetarn Hansakul, regional treasury economist at
\nWest LB in Singapore.<\/p>\n
\"There was a feeling that the rupiah might have been oversold
\nduring the previous three days amid the IMF uncertainty,\" one
\ndealer said.<\/p>\n
Despite Friday's recovery, the market probably will retain a
\nnegative bias against the rupiah in the near term because of
\ngeneral uncertainty about the prospects for reform in Indonesia,
\ndealers said.<\/p>\n
In addition to local factors, Asian currencies benefited from
\na general sense that the U.S dollar had been bid up too high
\nacross the region during the week, a dealer at a foreign bank
\nsaid.<\/p>\n
In northern Asia, the South Korean won was driven higher on a
\nbuying surge in local stocks. Seoul's Kospi index rose 4.1% on
\nthe day.<\/p>\n
At the close of local trading, the U.S. dollar was quoted
\nagainst the won at 1,107.3 won, down from 1,112.0 won late
\nThursday.<\/p>\n
The rally in the Nasdaq overnight helped spark interest in
\nSouth Korean technology stocks, dealers said.<\/p>\n
Next week, market participants probably will focus on the
\nApril 13 parliamentary elections, West LB's Hansakul said.<\/p>\n
\"We're unlikely to see the won break new ground ahead of the
\nelections,\" she said, as the market waits to see whether the
\nruling party can hold on to control.<\/p>\n
The Thai baht edged up, moving higher in tandem with the
\nstronger rupiah and on exporters' sale of dollars, dealers said.<\/p>\n
Exporters were looking to have an ample supply of baht on hand
\nwith Thai markets closed for two days next week for the New Year
\nholidays, a dealer at a Thai bank said.<\/p>\n
\"There was position-squaring before the weekend by both
\nexporters and importers,\" he said.<\/p>\n
At the close of local trading, the U.S. dollar was quoted at
\n37.985 baht, down from 38.135 baht late Thursday.<\/p>\n
The Philippine peso firmed up, hitting its highest level in
\nmore than a week in intraday trading. Investors have been
\nshunning the currency in recent sessions amid growing discontent
\nwith President Estrada's ability to lead the country.<\/p>\n
The U.S. dollar was quoted at 41.105 pesos at the close of
\ntrading, down from 41.120 pesos late Thursday. Several dealers
\nsaid the peso was simply swept higher along with other Asian
\ncurrencies and that market sentiment will continue to be bearish
\non the peso over the near term.<\/p>\n
The Singapore dollar also finished higher in featureless
\ntrading. The U.S. currency ended Asian trading at S$1.7125, down
\nfrom S$1.7156 the previous day. The pair stayed within a narrow
\nrange, finishing the day about where it started.<\/p>\n
The New Taiwan dollar finished a touch higher. The U.S. dollar
\nwas quoted at NT$30.444, down from NT$30.469 Thursday.<\/p>\n
The government reported that foreign exchange reserves fell by
\nabout $600 million in March when the central bank was forced to
\ndefend the local currency during the runup to the presidential
\nelection. It was the first foreign reserve decline in 21 months.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-higher-rupiah-gains-ground-on-reform-hopes-1447893297",
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