Indonesia's election optimism boosts rupiah, other units rise<\/p>\n
HONG KONG (Dow Jones): Growing optimism over the progress of
\nIndonesia's parliamentary elections, and a robust rally in the
\nyen helped lift Asian currencies against the U.S. dollar Monday.<\/p>\n
Local currencies across the continent ended the day higher,
\nbought up in response to improving economic fundamentals and a
\nrobust rebound in the yen.<\/p>\n
But it was the Indonesian rupiah that stole the show,
\nstrengthening in the offshore market as voters went peacefully to
\nthe polls in the country's first parliamentary elections since
\nthe fall of president Soeharto over a year ago.<\/p>\n
Dealing rooms in Jakarta were closed for the day, but
\npurchases of the rupiah in the Singapore market lifted the
\nIndonesian currency to its highest level since the middle of May
\nas sales pushed the U.S. dollar below the psychologically
\nimportant Rp 8,000 mark.<\/p>\n
\"A lot of players were long dollars before the elections, but
\nthere was no violence, so now we are seeing some (dollar) selling
\nfrom U.S. funds,\" the rupiah trader at a U.S. bank in Singapore
\nsaid.<\/p>\n
\"I think today's high of around Rp 8,000 should form a top for
\nnow, and I wouldn't rule out seeing Rp 7,000 or even Rp 6,500,\"
\nthe U.S. bank dealer said.<\/p>\n
That target may prove over-optimistic, according to traders at
\nother banks in Singapore. But with dollar-buying pressure from
\nonshore banks thought likely to abate following the poll, one
\nsaid: \"I wouldn't be surprised to see the dollar drift lower, to
\naround Rp 7,500.\"<\/p>\n
Late in Asia, the U.S. dollar was quoted at Rp 7,765, nearly 4
\npercent below levels of Rp 8,065 seen toward the end of Friday's
\nsession.<\/p>\n
Any rapid selloff of the dollar against the rupiah following
\nthe election could also see the U.S. currency fall against the
\nSingapore dollar, traders said, although they warned the drop
\nwould be modest.<\/p>\n
According to the head of foreign-exchange trading at a
\nSingapore bank, a fall in the U.S. dollar to Rp 7,000 or below
\ncould also see the U.S. currency slide to S$1.7220.<\/p>\n
\"But I don't see it going below that level in the short term,\"
\nhe said, predicting that solid support should emerge above
\nS$1.7200.<\/p>\n
With dealers' attention fixed firmly on developments in
\nJakarta, trading activity in the Singapore dollar was extremely
\nsubdued Monday. The U.S. dollar's fall against the yen barely
\ncaused a stir, as the market drifted aimlessly sideways.<\/p>\n
Late in Asia, the U.S. currency was quoted at S$1.7272, up a
\ntouch from S$1.7265 toward the end of local trading hours Friday.<\/p>\n
Trading in the Thai baht was similarly quiet Monday, with
\ndealers unable to point to any factors likely to push the Thai
\ncurrency out of its well-worn range of 37.05 baht to 37.15 baht
\nto the U.S. dollar.<\/p>\n
Toward the end of local dealing, the U.S. currency was quoted
\nat 37.0750 baht, unchanged from Friday's close.<\/p>\n
The Philippine peso fared better, as the local foreign-
\nexchange market reacted positively to Friday's data showing that
\nthe year-on-year inflation rate continues to decline.<\/p>\n
At the close of local trading, the U.S. dollar had slipped to
\n37.980 pesos, from 38.028 pesos at the previous close.<\/p>\n
In North Asia, the New Taiwan dollar rose strongly, hitting
\nits highest level in three-and-a-half months after Chou A-Ting,
\ndirector of foreign exchange for the Central Bank of China -
\nTaiwan's central bank - said the local dollar has room to rise in
\nthe near term.<\/p>\n
\"Fundamentally, Taiwan's economy is good, so the NT dollar
\nshould appreciate,\" Chou said late Saturday on the sidelines of
\nthe annual meeting of the Bank for International Settlements in
\nBasel.<\/p>\n
The local currency was further bolstered by domestic equity
\nmarket strength and the news that Taiwan's foreign-exchange
\nreserves reached a four-year high of $95.70 billion in May, up 13
\npercent from a year ago.<\/p>\n
At the close of local trading, the U.S. dollar was quoted at
\nNT$32.629, down from NT$32.742 at the previous close.<\/p>\n
The South Korean won also edged higher, although dollar-buying
\nby the Export-Import Bank of Korea limited the local currency's
\ngains.<\/p>\n
At the close, the U.S. dollar was at 1,183.20 won, down from
\n1,183.80 won Friday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesias-election-optimism-boosts-rupiah-other-units-rise-1447893297",
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