Asian monies mostly down, Rp peso at 2-month low<\/p>\n
Ditas Lopez, Dow Jones, Manila<\/p>\n
The Philippine peso ended at a two-month low on continued
\nsecurity and political concerns on Friday, while other Asian
\ncurrencies were also mostly weaker against the dollar.<\/p>\n
Short-dollar covering following a recent sell-off, and
\nimporter demand drove dealings across the region, but trading was
\nmuted by holidays in Asia, including Singapore and Malaysia.<\/p>\n
The dollar ended at 55.330 peso, its highest level since
\nclosing at 55.450 peso on Aug. 26, and was up from 55.240 peso on
\nThursday. Volume declined to US$145.2 million from $236.5 million
\non Thursday.<\/p>\n
Central bank deputy governor Amando Tetangco said the dollar's
\nrecent rally is partly due to corporate demand, particularly from
\nfirms covering their month-end debt payments and import
\nrequirements.<\/p>\n
"The political noise isn't helping. It has been a cautious
\nmarket," said Tetangco, who noted that banks were also buying
\ndollars ahead of the May 2004 presidential elections. There are
\nconcerns of political and security instability in the months
\nleading to the polls.<\/p>\n
There have been renewed security concerns following reports
\nthat 30 members of the terror Jemaah Islamiyah group remain in
\nthe country.<\/p>\n
Senior Philippine officials have been trying to calm the
\nmarkets, and central bank governor Rafael Buenaventura added his
\nvoice on Friday, saying the peso should recover from its recent
\nweakness toward the year end when remittances from overseas
\nFilipino workers during Christmas should help support the local
\ncurrency.<\/p>\n
Indonesia's central bank also said on Friday it won't
\nintervene to support the rupiah, which has weakened due mainly to
\ndollar demand from corporates for month-end debt repayments.<\/p>\n
The dollar ended at Rp 8,490, higher than Rp 8,475 on
\nThursday.<\/p>\n
Apart from growing demand from local corporates, recent losses
\nin the local equity market also pressured the rupiah.<\/p>\n
"Some foreign investors sold shares and bought dollars," said
\na Jakarta trader.<\/p>\n
The Korean won, meanwhile, fell over the day with market
\nparticipants suspecting the government hand in the decline,
\nweakening the won to boost exports and support the flagging
\neconomy.<\/p>\n
The dollar climbed to 1,186.8 won before settling at 1,185.7
\nwon, preferring to track the gains in non-deliverable forwards
\nand its advance against the yen.<\/p>\n
The U.S. unit closed at 1,184.4 won on Thursday.<\/p>\n
Elsewhere, the New Taiwan dollar was weaker on importers'
\nrequirements, with interbank players mostly quiet, keeping trades
\nrelatively light. The U.S. dollar closed at NT$34.020, up from
\nNT$33.975 a day earlier.<\/p>\n
Bucking the regional trend was the Thai baht, which gained
\nsome ground on Friday after a local holiday on Thursday. The
\ndollar was trading at 39.815 baht against Wednesday's close of
\n39.97 baht. Dollar demand from importers though limited the local
\nunit's gains.<\/p>\n
The Bank of Thailand on Friday said that recent limits imposed
\non outstanding balances of nonresident accounts with local
\nfinancial institutions to curb speculation in the foreign
\nexchange market had been effective.<\/p>\n
The Singapore dollar also strengthened in offshore trading,
\nwith onshore markets closed for a public holiday. The U.S. dollar
\nwas quoted at S$1.7414 in late Asian trading, compared with
\nS$1.7418 a day earlier.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-mostly-down-rp-peso-at-2-month-low-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}