Asian currencies move higher, rupiah sentiment gets a boost<\/p>\n
HONG KONG (Dow Jones): Asian currencies ended mostly higher
\nThursday as the yen stabilized, removing much of the downward
\npressure on the regional currency markets.<\/p>\n
The rupiah edged higher, but interest to buy the Indonesian
\ncurrency remained limited despite the prospect of sizable inflows
\nin the short-to-medium term.<\/p>\n
While visiting Jakarta, Singapore Prime Minister Goh Chok Tong
\npledged to set up two investment funds aimed at channeling over
\nUS$500 million in investment into Indonesian companies.<\/p>\n
Meanwhile the new head of the Indonesian Bank Restructuring
\nAgency declared his intention to press ahead with plans to raise
\nover $2 billion by March 31 through asset sales.<\/p>\n
Hopes are also high that the International Monetary Fund will
\nrelease around $1 billion in assistance funding to Indonesia
\nlater this month, once the country's 2000 budget is approved by
\nparliament.<\/p>\n
Andrew Fung, regional treasury economist at Standard Chartered
\nBank in Singapore, cautioned against expecting massive investment
\ninflows to lift the rupiah in the near future.<\/p>\n
The most immediate impact will come from the release of the
\nIMF funds, some of which Bank Indonesia will convert by drip
\nfeeding small amounts into the market, he said.<\/p>\n
But any Singapore-backed investment is likely to proceed
\ncautiously, and only after exhaustive due diligence, while the
\nIBRA sales will take time to set in progress.<\/p>\n
\"IBRA is treading a fine line between accelerating the process
\nand on the other hand making sure that the process is transparent
\nand rule-based,\" Fung said.<\/p>\n
Toward the end of Asian trading, the dollar was quoted against
\nthe rupiah at Rp 7,210, down from Rp 7,285 the day before.<\/p>\n
The South Korean won also set the pace, rising strongly from
\nthe start of trading in Seoul as dealers reported robust interest
\nfrom international investors to buy the local currency.<\/p>\n
Sentiment toward the won was further boosted when the Bank of
\nKorea released its monetary policy statement for the year.<\/p>\n
Central bank Governor Chon Chol-hwan said the Bank of Korea
\nwould concentrate on maintaining domestic price stability,
\nwarning he would take \"preemptive steps\" to counter inflation.<\/p>\n
Chon also forecast that long term interest rates, as
\nrepresented by the benchmark three-year corporate bond yield,
\nwould stabilize around current levels of 10.36%, and further
\npredicted the supply of dollars in the foreign exchange market
\nwould exceed demand as trade and investment flows continue to
\nfavor the won.<\/p>\n
Most market watchers took this as a clear hint the BOK will
\nallow the won to strengthen over the course of 2000, believing
\nthat the central bank prefers to use currency appreciation rather
\nthan higher interest rates to combat inflation.<\/p>\n
At the end of Thursday's session in Seoul, the dollar was
\nquoted at 1,135.10 won, down from Wednesday's rate of 1,145.50
\nwon.<\/p>\n
Investor interest to buy the New Taiwan dollar was also strong
\nThursday, but heavy U.S. dollar purchases worth well over $100
\nmillion executed by the central bank in the last few minutes of
\ntrading in Taipei ensured the local currency ended the day
\nweaker.<\/p>\n
At the close, the U.S. dollar was quoted at NT$30.838, up from
\nNT$30.828 the previous day.<\/p>\n
Among other regional currencies the Thai baht closed higher,
\nbut both the Singapore dollar and the Philippine peso ended the
\nday down slightly.<\/p>\n
Against the baht, the dollar ended Asian hours at 37.450 baht,
\ndown from 37.655 baht the previous day.<\/p>\n
Against the Singapore dollar, the U.S. currency was quoted at
\nS$1.6680, up from S$1.6672.<\/p>\n
In Manila the U.S. unit ended at 40.600 pesos, compared with
\n40.580 pesos Wednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-move-higher-rupiah-sentiment-gets-a-boost-1447893297",
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