Asian monies down late, rupiah sets weaker tone<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were lower late
\nMonday, weighed on by the rupiah as the Indonesian political
\nclimate heats up in the countdown to a key parliamentary assembly
\nnext month.<\/p>\n
Many currency watchers are optimistic that the U.S. dollar
\ncould run up to Rp 10,000 before the People's Consultative
\nAssembly, or MPR by its Indonesian acronym, meets in mid-August
\nto review President Abdurrahman Wahid's performance. This is
\nexpected to drag down the other Southeast Asian currencies.<\/p>\n
\"These currencies will remain weak in this region until we get
\nsome conclusion from the MPR next month,\" said Mansoor Mohi-
\nuddin, foreign exchange strategist at UBS Warburg.<\/p>\n
In late trade, the dollar was at Rp 9,520, up from Rp 9,461
\nlate Friday. The dollar had climbed to Rp 9,575 in early trading,
\nbut was capped by profit-taking in the U.S. currency and fears of
\ndollar-selling by state banks, dealers said.<\/p>\n
Although the head of the assembly, Amien Rais, had reportedly
\nsaid over the weekend it was unlikely Abdurrahman, more popularly
\ncalled Gus Dur, would be impeached by the country's highest
\nlegislative body, investors remained nervous.<\/p>\n
Investors are first bracing for an expected showdown Thursday
\nbetween Gus Dur and the Indonesian parliament over his
\ncontroversial sacking of two ministers earlier this year, dealers
\nsaid.<\/p>\n
Even Indonesia's deadline Thursday to meet economic reform
\ntargets set with the International Monetary Fund \"will be
\novershadowed by the bright spotlight on Gus Dur,\" said Sani
\nHamid, an analyst at market consultants Standard & Poor's MMS
\nInternational.<\/p>\n
Although the yen has had little impact on Asian currencies in
\nrecent months, caution prevailed as investors kept a close watch
\non whether Bank of Japan would end its 17-month-long zero
\ninterest rate policy at its board meeting Monday, dealers said.<\/p>\n
Currency watchers correctly predicted the possibility that the
\nBOJ would leave its zero interest-rate policy unchanged,
\nfollowing local newspaper reports over the weekend that the BOJ
\nmight want to monitor the effects of Sogo Co.'s failure on the
\ncountry's stock market and its economic recovery before changing
\nthe current monetary policy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-down-late-rupiah-sets-weaker-tone-1447893297",
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