Asian currencies mixed late, rupiah gyrates on news<\/p>\n
SINGAPORE (Dow Jones): Asian currencies late Monday are mixed
\namid talk of a Cabinet reshuffle in Indonesia, and news that
\nJakarta is catching up on an economic reform program set out by
\nthe International Monetary Fund.<\/p>\n
News that Indonesian President Abdurrahman Wahid expects three
\nmembers of his cabinet to resign - at least temporarily - while
\nthey face corruption charges, and speculation that this could
\ntrigger a shakeup in the Cabinet pushed the Indonesian rupiah to
\nan early intraday low of Rp 7,700 against the U.S. dollar.<\/p>\n
However, the weakness was short-lived as the currency
\nrebounded after the IMF said it would support Indonesia's request
\nto restructure $2.1 billion in sovereign debt at a Paris Club
\nmeeting April 12.<\/p>\n
John Dodsworth, IMF country representative to Indonesia, told
\nDow Jones Jakarta is catching up on the implementation of a slew
\nof economic reforms, such as bank recapitalization and private
\ndebt restructuring.<\/p>\n
Failure to meet a March 31 deadline for a number of these
\nreforms prompted the IMF to delay the disbursement of $400
\nmillion in loans. This cast a pall over the Paris Club meeting as
\nsome donor countries were reluctant to allow Indonesia to
\nreschedule its debt unless it remained on track with the IMF.<\/p>\n
But IMF backing for Indonesia at that meeting, and news it
\nwill soon send a review team to the country suggest the IMF may
\nsoon resume lending, which would boost investor sentiment and the
\nrupiah.<\/p>\n
The dollar late in Asian trading was quoted against the rupiah
\nat Rp 7,660, barely changed from Rp 7,663 late Friday.<\/p>\n
The currency of neighboring Singapore weakened on expectations
\nSingapore Telecommunications Ltd., or SingTel, will proceed with
\na plan to buy a stake in Time Engineering Bhd. of Malaysia for
\nmore than S$1 billion, or 2.2 billion ringgit.<\/p>\n
Traders expect SingTel would need to sell Singapore dollars in
\nthe spot market to finance what would be a cash transaction.<\/p>\n
Both parties have set a one-month deadline to finalize the
\nproposed tie-up, which is subject to regulatory approvals, and is
\nconditional upon a due-diligence review of Time Engineering's
\noperations by SingTel.<\/p>\n
The U.S. currency was quoted at S$1.7165, up from S$1.7125
\nlate Friday.<\/p>\n
Elsewhere, Thai Finance Minister Tarrin Nimmanahaeminda denied
\nrumors he was set to dismiss Central Bank Governor Chatu Mongol
\nSonakul from office.<\/p>\n
Despite the denial, tensions between the two remain high over
\na new law that would merge three central bank reserve accounts.<\/p>\n
With elections due by November, Tarrin wants to transfer
\nexcess reserves to reduce debt and avoid unpopular tax hikes,
\nwhile Chatu Mongol says the new law would weaken the Bank of
\nThailand's ability to manage monetary policy.<\/p>\n
The U.S. dollar was at 38.000 baht from 37.985 baht a day
\nearlier.<\/p>\n
In Taiwan, renewed attacks by China on Taiwan's vice
\npresident-elect Annette Lu failed to dampen enthusiasm for Taiwan
\nstocks - the benchmark index rose 1.9 percent - or curb a sharp
\nrise in the New Taiwan dollar.<\/p>\n
China described Monday Annette Lu as insane and accused her of
\nrisking the island's safety by favoring independence, while the
\nofficial Xinhua News Agency referred to Lu on the weekend as the
\n\"scum of the Chinese nation.\"<\/p>\n
The New Taiwan dollar rose to its highest level since October
\n23, 1997. At the close, the U.S. currency was quoted at
\nNT$30.300, from NT$30.360 previously.<\/p>\n
Meanwhile, the South Korean won ended lower on steady indirect
\ngovernment intervention through the state-run Korea Development
\nBank.<\/p>\n
Authorities appeared determined to neutralize the potential
\nwon-bullish impact of Monday's surprise announcement that North
\nand South Korea will meet June 12 to 14, said Oh Suk-tae, a
\ncurrency strategist for Citibank in Seoul.<\/p>\n
The dollar finished at 1,109.40 won, up from Friday's close of
\n1,107.10 won.<\/p>\n
In Manila, it ended at 41.100 pesos, down slightly from 41.105
\npesos previously.<\/p>",
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