Asian currencies pushed lower, rupiah ends flat in quiet trade<\/p>\n
SINGAPORE (Dow Jones): A slump in regional bourses and an
\nuncertain political climate in some countries late Monday cast a
\npall over Asian currencies, pushing them lower, market watchers
\nsaid.<\/p>\n
The currencies were, however, clamped in narrow trading bands,
\nwith activity curtailed by the observance of Sports Day in Japan
\nand Columbus Day in the U.S., dealers said.<\/p>\n
The Indonesian rupiah closed flat in lethargic dealing as
\nmarket participants deserted the market due to a public holiday
\nin the U.S.<\/p>\n
After trading in a tight range of between Rp 8,810 and Rp
\n8,825, the dollar closed at Rp 8,812, little changed from its
\nclose Friday.<\/p>\n
Dealers, however, said that underlying sentiment remains weak
\non the rupiah as a court dismissal last month of a corruption
\ncase against former President Soeharto could still spark public
\nanger.<\/p>\n
"On top of the political problem, demand for the dollar
\nseasonally increases during the last quarter of the year," said a
\ndealer with a foreign bank in Jakarta.<\/p>\n
Year-end debt repayment and profit repatriation by units of
\nforeign companies in Indonesia usually boost dollar demand ahead
\nof the year-end.<\/p>\n
In the shorter term, the market is waiting for the result of
\nan international lenders' meeting in Tokyo next week, during
\nwhich Indonesia will seek $4.8 billion of loans.<\/p>\n
Indonesia is expected to face a tough time during the meeting
\nbecause of the killing of three United Nations relief workers in
\nWest Timor last month, as well as the slow progress the
\ngovernment has made to reform the economy.<\/p>\n
Dealers expect the dollar to trade between Rp 8,790 and Rp
\n8,850 Tuesday.<\/p>\n
A 3.2 percent plunge on Nasdaq Friday roiled the stock markets
\nin South Korea, Taiwan and Singapore Monday, in turn pressuring
\ntheir respective currencies, dealers said.<\/p>\n
The South Korean won reacted with little cheer to an agreement
\nbetween General Motors Corp., Fiat SpA and Daewoo Motor Co.'s
\ncreditors to proceed with sale talks for the ailing South Korean
\nautomaker.<\/p>\n
Market participants are awaiting the final deal before
\nrejoicing and are unwilling to react to developments on a
\npiecemeal basis, market watchers said.<\/p>\n
"If successful, that could be good news for Korean financial
\nmarkets, but right now, the market seems conservative in
\ninterpreting the news," said Suktae Oh, an economist at Salomon
\nSmith Barney\/Citibank in Seoul.<\/p>\n
Oh said the dollar will likely remain sandwiched in a "very
\nnarrow range of 1,110 won to 1,120 won or 1,115 won to 1,125 won"
\nin the absence of any further surprises or shocks.<\/p>\n
Against the won, the dollar finished at 1,117 won, up from
\nFriday's close of 1,116.20 won.<\/p>\n
In Taiwan, a 2.3 percent slide on the Taipei bourse, keen
\nimporter demand for the U.S. currency and persisting doubts over
\nthe direction of the government's economic policy following last
\nweek's cabinet reshuffle had dented the New Taiwan dollar,
\ndealers said.<\/p>\n
However, intervention by Taiwan's central bank cushioned the
\nblow on the New Taiwan dollar, they added.<\/p>\n
The U.S. dollar closed at NT$31.301, up slightly from the
\nprevious close of NT$31.293.<\/p>\n
Against the Singapore dollar, the U.S. currency rose to
\nS$1.7498 from S$1.7475 late Friday.<\/p>\n
The Philippine currency once again weakened below the 46.50-
\npeso mark against the dollar, which was its previous record low,
\namid concerns of allegations from an opposition lawmaker that
\nPresident Joseph Estrada and his family received kickbacks from
\nillegal gambling operations, dealers said.<\/p>\n
The dollar was at 46.55 pesos, up from Friday's close of
\n46.395 pesos. The dollar had hit a record high of 46.610 pesos
\nlast Wednesday.<\/p>\n
The baht failed to be lifted by the Thai state rescue fund's
\napproval Monday of the terms of a deal to sell a 75 percent stake
\nin nationalized Bangkok Metropolitan Bank PCL to the UK's HSBC
\nHoldings PLC.<\/p>\n
The dollar was at 42.585 baht, up from 42.235 baht late
\nFriday.<\/p>",
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