Asian currencies up late, rupiah rises to 7-month high<\/p>\n
Netty Ismail, Dow Jones, Singapore<\/p>\n
Dazzling foreign exchange participants, the Indonesian rupiah
\nvaulted to a seven-month high and broke key resistance levels
\nafter foreign governments agreed to reschedule part of the
\ncountry's massive foreign debt.<\/p>\n
Other Asian currencies were also stronger - albeit in familiar
\nterritory - as they found respite from a firmer yen, observers
\nsaid.<\/p>\n
The rupiah - which has been outperforming its regional peers
\nin recent months - received a fresh impetus after the Paris Club
\nofficial creditors agreed late Friday to reschedule Indonesia's
\nUS$5.4 billion debt due during the next 21 months.<\/p>\n
The dollar collapsed below the psychologically important
\nsupport level of Rp 9,500 Monday - which many had expected to
\nhold - and subsequently fell through Rp 9,400 in late trading.<\/p>\n
Foreign and local banks unloaded dollars, with state banks
\njoining the selling spree after having recently bought the U.S.
\ncurrency on behalf of their customers, including oil companies.<\/p>\n
Gains in other Asian currencies were somewhat more restrained,
\ngiven the yen's relatively modest rise and caution ahead of
\nFederal Reserve Chairman Alan Greenspan's testimony before a
\njoint Congressional committee Wednesday.<\/p>\n
Investors are seeking clues as to when the central bank might
\nstart to raise interest rates, with such uncertainty clouding the
\nnear-term direction of the U.S. dollar, observers said.<\/p>\n
The prolonged crisis in the Middle East has also kept the
\nmarket on tenterhooks.<\/p>\n
At 0910 GMT (4.10 p.m. Jakarta time), the dollar was quoted at
\n131.61 yen, below 131.95 yen in New York and 132.11 yen in Tokyo
\nlate Friday.<\/p>\n
Finding additional support from foreign equity inflows, the
\nSouth Korean won closed at 1,327.9 won against the dollar,
\nstronger than 1,332.0 won Friday.<\/p>\n
The won will likely strengthen to 1,300 won in coming months
\nas the South Korean economy leads the region out of its economic
\nmalaise, said Simmonds at Salomon Smith Barney\/Citibank.<\/p>\n
The New Taiwan dollar closed at NT$34.992 against its U.S.
\ncounterpart, slightly firmer than NT$34.998 Friday.<\/p>\n
Taiwan's central bank continued to intervene to check any
\nexcessive strength in the local currency, buying an estimated
\nUS$50 million Monday, dealers said.<\/p>\n
The Singapore dollar was quoted at S$1.8361 against the U.S.
\ncurrency, slightly stronger than S$1.8375 late Friday.<\/p>\n
On the Philippine Dealing System, the dollar closed at 50.965
\npesos, down from 51.020 pesos Friday.<\/p>\n
The Thai currency was quoted at 43.505 baht to the dollar in
\nsparse offshore trading, compared with 43.555 baht late Friday.
\nThe domestic baht market is closed Monday and Tuesday due to the
\nThai New Year holidays.<\/p>",
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"sponsor": "Okusi Associates",
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