Asian currencies mixed, stocks scandal dents peso sentiment<\/p>\n
HONG KONG (Dow Jones): Asian currencies had a mixed day
\nWednesday, initially strengthening in line with an overnight run-
\nup in the yen, then falling back as official intervention erased
\nthe Japanese currency's gains.<\/p>\n
Attention in regional markets focused closely on the
\nPhilippine peso after Tuesday's wholesale resignation of the
\nPhilippine Stock Exchange's compliance department.<\/p>\n
As expected the resignation, a protest over the alleged
\nwhitewash of a stock exchange investigation into price rigging,
\nbadly dented sentiment toward the currency.<\/p>\n
Within minutes of the opening bell on the Philippine Dealing
\nSystem the peso had dropped to its lowest level in over five
\nmonths, as the dollar was bid up through the 41.000 level to
\ntouch a high of 41.150 pesos.<\/p>\n
However, the dollar closed local trading at 40.985 pesos, up
\nonly slightly from 40.980 pesos at Tuesday's close.<\/p>\n
Although investor sentiment in the Philippines has suffered as
\na result of the stock trading scandal, analysts agreed that the
\npeso's current volatility is likely to prove transitory,
\nforecasting that the currency will find support from expected
\ncorporate demand.<\/p>\n
In Jakarta, the Indonesian rupiah ended little changed
\nWednesday in listless trading as participants waited for fresh
\nleads.<\/p>\n
The dollar ended Asian trading at 7,450 rupiah against Rp
\n7,455 late Tuesday.<\/p>\n
Dealers said the market closely watched the visit Wednesday of
\nPresident Abdurrahman Wahid to the house of former President
\nSoeharto, but no news had emerged from the meeting between the
\ntwo.<\/p>\n
Attorney General Marzuki Darusman is seeking to have doctors
\nexamine Soeharto to see if he's fit to testify in a corruption
\ncase involving the former president's charitable trusts.<\/p>\n
Abdurrahman made no comment to the press on his conversation
\nwith Soeharto, whose aides say is too sick to face questioning.<\/p>\n
In other regional markets the won eased slightly from
\nTuesday's levels as the market responded to official warnings
\nthat the South Korean authorities would intervene to counter any
\nrapid strengthening of the local currency.<\/p>\n
Market participants said the warnings were reinforced by
\ngovernment-driven dollar purchases, which helped push the U.S.
\ncurrency to an intraday high of 1,122.00 won.<\/p>\n
Profit-taking set in, however, and by the close the U.S.
\ndollar had slipped back to be quoted at 1,119.00 won, just a
\ntouch higher than 1,118.50 won the previous day.<\/p>\n
Central bank sales of the New Taiwan dollar neutralized upward
\npressure on the local currency exerted by continuing foreign
\ninvestor interest to buy into the Taipei stock market.<\/p>\n
At the close, the U.S. dollar was quoted against the Taiwanese
\ncurrency at NT$30.766, up from NT$30.762 the day before on
\nrelatively slim volumes of $365 million.<\/p>\n
The Singapore dollar traded sideways through most of the Asian
\nsession after gaining in line with the yen in overnight trade.<\/p>\n
Late in Asian dealing the U.S. dollar was trading at S$1.7178,
\ndown from S$1.7213 late Tuesday.<\/p>\n
Against the Thai baht, the U.S. dollar was at 37.965 baht,
\ndown from 38.0250 baht the day before.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-mixed-stocks-scandal-dents-peso-sentiment-1447893297",
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