Debt sends rupiah to its lowest in 2 years<\/p>\n
SINGAPORE (Dow Jones): Concerns over the Indonesian
\ngovernment's ability to repay billions of dollars in maturing
\ndebt pushed the rupiah to its lowest level in nearly 2 1\/2 years
\nMonday.<\/p>\n
The Philippine peso also slumped against the dollar, but most
\nother regional currencies finished Asian trading hours higher.<\/p>\n
In Jakarta, local corporations snatched up U.S. dollars on
\nfears that the rupiah could fall even further if the government
\ncan't make good on its debts, dealers said.<\/p>\n
Steady rupiah selling in the morning lifted the dollar to Rp
\n9,865 by midday, the U.S. currency's highest level against the
\nIndonesian currency since October 1998 when the rupiah was still
\nunder pressure from the Asian financial crisis.<\/p>\n
Sentiment toward the rupiah is closely tied to IMF assistance
\nto Indonesia, which has been suspended because of concerns the
\ngovernment is falling behind on promised reforms.<\/p>\n
The dollar moved off its intraday highs in afternoon trading
\nas state-run banks entered the market and sold the U.S. currency.
\nLate in Asia the dollar was quoted at Rp 9,840, up from Rp 9,660
\nlate Friday.<\/p>\n
\"We should see further pressure on the rupiah in March as more
\ndebt comes due,\" Panggabean said.<\/p>\n
In North Asia, both the South Korean won and New Taiwan dollar
\nedged higher against the U.S. dollar in lackluster trading.<\/p>\n
Against the won the dollar closed at 1,248 won, up slightly
\nfrom Friday's 1,248.5 won.<\/p>\n
The dollar was supported by buying in the non-deliverable
\nforward market late last week, but it edged lower on dollar
\nselling from local exporters, dealers said.<\/p>\n
In Taipei, the U.S. dollar finished at NT$32.345, compared to
\nNT$32.351 at the previous close.<\/p>\n
Little direction came from the local stock market, which ended
\n0.2 percent lower Monday, or from the yen, which weakened only
\nslightly against the U.S. dollar, dealers said.<\/p>\n
A recent run-up in the Philippine peso, inspired by the
\ncountry's stabilizing political situation, appears to have
\npeaked. Peso appreciation \"seemed to have hit a wall ... with
\nlonger-term optimism balanced by weak short-term economic
\nindicators,\" DBS Bank said in a research report.<\/p>\n
The dollar closed at 48.230 pesos on the Philippine Dealing
\nSystem, up from 48.160 pesos Friday.<\/p>\n
The Thai baht strengthened on optimism over Prime Minister
\nThaksin Shinawatra's plan to promote economic growth and deal
\nwith the country's bad debt problem.<\/p>\n
Late in Asian trading the dollar was quoted at 42.920 baht,
\ndown from 43.075 baht late Friday.<\/p>\n
The Singapore dollar was virtually unchanged with few fresh
\nleads to drive trading. The Finance Ministry last Friday
\nintroduced a budget for fiscal 2001 that included a number of tax
\nbreaks for individuals and corporations.<\/p>\n
The government also said last week that it intended to
\ncontinue its policy of allowing the local currency to gradually
\nappreciate.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1,7439, compared
\nwith S$1.7442 late Friday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/debt-sends-rupiah-to-its-lowest-in-2-years-1447893297",
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"sponsor": "Okusi Associates",
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