Asian currencies mixed, rupiah closes higher<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed late
\nWednesday, as the market displayed a non-committal reaction to
\nthe close finish of the U.S. presidential election, dealers said.<\/p>\n
While Asian currencies had barely reacted to earlier reports
\nRepublican presidential candidate George W. Bush had likely
\ndefeated Democrat candidate Al Gore, it is now unclear whether
\nBush has actually won the election. Gore's campaign manager has
\nsought a recount of the results in Florida, with Gore refusing to
\nadmit defeat.<\/p>\n
Most analysts said they don't expect any significant shift in
\nU.S. trade or foreign policy even under a Republican
\nadministration, which would therefore have minimal impact on
\nAsian currencies in the medium term.<\/p>\n
\"Essentially, we see no change in U.S. trade or foreign policy
\nresulting from a change in administration and therefore we see
\nvery little medium-term impact on Asian currencies resulting from
\na Bush or Gore victory,\" said Peter Redward, a regional currency
\nstrategist at Deutsche Bank.<\/p>\n
Longer term, however, the risk for Asian currencies could come
\nfrom the way the new administration links trade relations to
\nlabor issues and environmental standards, analysts said.<\/p>\n
Taking center stage in Asia, President Joseph Estrada's
\ndefiance in the face of mounting pressure for him to step down
\ncontinued to weigh on the Philippine currency, which slumped
\nbelow 50 pesos against the dollar.<\/p>\n
Most other Asian currencies were wedged in tight ranges as the
\nclose U.S. presidential race kept market participants on the
\ndefensive.<\/p>\n
The Indonesian rupiah closed higher Wednesday on dollar sales
\nby state banks, as the market shrugged off the confusion over the
\nwinner of the U.S. presidential race.<\/p>\n
Early predictions of a win by Republican candidate George W.
\nBush failed to lift the dollar against the rupiah, with most
\nmarket participants preferring to focus on local political
\ndevelopments.<\/p>\n
Late in the Asian day, U.S. electoral officials still hadn't
\nnamed a winner of the election.<\/p>\n
With little impact from the U.S. elections, the dollar closed
\nlower at Rp 9,195 in Asia, from Rp 9,255 late Tuesday.<\/p>\n
News Indonesia is still mulling plans to force local exporters
\nto convert their dollar receipts back into the local currency
\nalso helped the rupiah.<\/p>\n
Although Trade and Industry Minister Luhut Panjaitan said
\nWednesday the government is still far from a decision, his
\ncomments will refresh talk of forced repatriation of dollars in
\nthe foreign currency markets.<\/p>\n
Still, instability on the local political front, notably a
\nhigher court's decision to reopen former President Suharto's
\ncorruption trial, continued to weigh on the rupiah.<\/p>\n
The peso extended Tuesday's decline, after hopes of an early
\nand voluntary exit by President Estrada receded.<\/p>\n
Estrada has denied accusations he took bribes from gambling
\nlords and has vowed to clear his name. A possible impeachment
\ntrial in the senate could start later this month.<\/p>\n
Gerard Teo, an economist at ABN AMRO, said that a conference
\ncall with central bank governor Raphael Buenaventura suggested
\nthe authorities believe the political quandary will be resolved
\nconstitutionally and that this could take place by year-end.<\/p>\n
This could spark a \"relief rally\" in Philippine asset markets,
\nhe added.<\/p>\n
He said that ABN AMRO may adjust its end-2001 forecast of 55
\npesos if the country's \"risk premium eases with a successful
\npolitical resolution\", although it is maintaining this forecast
\nfor now. The bank expects the dollar to trade at 50 pesos at the
\nend of this year.<\/p>\n
The dollar closed at 50.100 pesos on the Philippine Dealing
\nSystem, up from Tuesday's close of 49.250 pesos. The dollar hit
\nan intraday high of 50.480 pesos.<\/p>\n
In the Thai currency market, the dollar eased to 43.57 baht
\nfrom 43.625 baht late Tuesday.<\/p>\n
A surge on Nasdaq futures sparked by earlier reports of a Bush
\nvictory salvaged the South Korean won, which was hit by worries
\nover restructuring efforts at Hyundai Engineering & Construction
\nCo. and Daewoo Motor Co, dealers said.<\/p>\n
The dollar finished at 1,134.30 won, down from Tuesday's close
\nof 1,136.10 won.<\/p>\n
The New Taiwan dollar continued to be boosted by foreign
\nequity fund inflows, lured by the country's higher weighting in
\nthe widely tracked Morgan Stanley Capital International Indexes.<\/p>\n
The U.S. dollar closed at NT$32.119, down from NT$32.149
\nTuesday.<\/p>",
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