Asian monies mixed late, market mulls rupiah's developments<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed late
\nFriday, with the Indonesian rupiah holding steady as market
\nplayers digested the latest political developments in Jakarta.<\/p>\n
The stabilizing rupiah helped the Thai baht gain ground. The
\nSingapore dollar, New Taiwan dollar and Philippine peso all
\nweakened, while the South Korean won finished trading unchanged.<\/p>\n
Indonesian President Abdurrahman Wahid Friday signed a decree
\nformalizing the delegation of duties to his popular deputy,
\nMegawati Sukarnoputri.<\/p>\n
The market has been generally supportive of Megawati's new
\nrole announced earlier this month, but analysts say there is no
\nguarantee the vaguely worded decree will end the political
\ninfighting that has caused the rupiah to slump.<\/p>\n
Late Friday the Indonesian currency was quoted at Rp 8,395 to
\nthe dollar, compared with Rp 8,400 per dollar late Thursday.<\/p>\n
The decree delegates the day-to-day management of government
\noperations to Megawati and allows her to review the performance
\nof the cabinet.<\/p>\n
However, it fails to detail what powers she will have to carry
\nout those duties, analysts said.<\/p>\n
\"The document is just a formality,\" said Arbi Sanit, a
\nprofessor at the University of Indonesia. \"In practice, it won't
\nbe effective, as it isn't detailed.\"<\/p>\n
Market participants are probably waiting to see what the
\nreaction is from Megawati herself, said Steve Brice, treasury
\neconomist at Standard Chartered Bank in Singapore.<\/p>\n
The rupiah could strengthen to Rp 8,000 per dollar next week
\nif Wahid's recent cabinet reshuffle proves successful and the
\nmarket gains confidence that economic reforms will be carried
\nout, Brice said.<\/p>\n
But, ING Barings, asserting that it expects markets to remain
\n\"uncomfortable\" with Indonesian politics, said it is maintaining
\nits forecast that the rupiah will weaken Rp 8,870 to the dollar
\nby the end of the year.<\/p>\n
In a research note written Thursday and received Friday by Dow
\nJones Newswires ING Barings said that Wahid, in choosing new
\ncabinet members \"ignored an obvious opportunity to make amends\"
\nwith Megawati.<\/p>\n
In Thailand, dollar-selling by exporters helped lift the baht,
\ndealers said. Toward the end of trading the U.S. dollar was
\nquoted at 40.875 baht, down from 41.020 late Thursday.<\/p>\n
An uptrend in the Thai stock market over the past month also
\nhas helped support the baht, Standard Chartered's Brice said.<\/p>\n
A more stable interest rate environment in the U.S. has
\nboosted investor appetite for risker assets, such as Thai stocks,
\nhe said. This has helped offset the negative market sentiment
\nstemming from the political turmoil in Thailand, Brice added.<\/p>\n
In Seoul, currency dealers refrained from speculative trading
\nto protest what they claim has been excessive intervention in the
\nmarket by the Korean government. The lack of activity left the
\nwon unchanged at 1,114.10 to the dollar.<\/p>\n
Dealers at most local and foreign banks agreed Thursday not to
\nengage in speculative trading until the end of business Tuesday.<\/p>\n
They claim the government's continued efforts to support the
\ndollar has forced the U.S. currency into such a tight range that
\nit has curtailed their ability to make profits on trades.<\/p>\n
The New Taiwan dollar was pressured by month-end importer
\ndemand for the U.S. dollar and sluggishness in the local stock
\nmarket, dealers said.<\/p>\n
The U.S. dollar closed at NT$31.072, compared with the
\nprevious close of NT$31.069.<\/p>\n
The Singapore dollar weakened slightly in quiet, range-bound
\ntrading. Near the end of the session the U.S. dollar was quoted
\nat S$1.7206, up from S$1.7200 late Thursday.<\/p>\n
Against the Philippine peso, the dollar closed at 44.040
\npesos, down from 44.980 pesos at the previous close.<\/p>",
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