Most Asian monies fall as rupiah extends rally<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mostly weaker
\nFriday except for the rupiah, which extended its rally amid
\nincreasing optimism over a political shakeup in Indonesia.<\/p>\n
Indonesian President Abdurrahman Wahid Friday offered further
\ndetails regarding his plan to delegate day-to-day management of
\ngovernment operations to Vice President Megawati Sukarnoputri.<\/p>\n
The President, more popularly called Gus Dur, who has been
\ncriticized as ineffective in solving Indonesia's economic
\nproblems, clarified that he will not share power with Megawati,
\nbut merely delegate duties to her in a cabinet reshuffle set for
\nAug. 21. Gus Dur also said he plans to appoint a coordinating
\nminister to assist Megawati.<\/p>\n
The rupiah has surged nearly 4 percent against the U.S. dollar
\nsince Gus Dur unveiled his plan Wednesday. The dollar fell as low
\nas Rp 8,300 intraday after trading as high as Rp 8,625 just two
\ndays earlier.<\/p>\n
Near the end of Asian trading Friday, the dollar was quoted at
\nRp 8,345, compared with Rp 8,350 late Thursday.<\/p>\n
Despite the latest calming words from Gus Dur, nothing
\nfundamental in the Indonesia political story has changed, said
\nChia Hsin-Li, a currency research associate at JP Morgan in
\nSingapore.<\/p>\n
\"There is still a lot of uncertainty about what will come out
\nof the cabinet reshuffle,\" she said. \"The current rally just sets
\nyou up for a bigger sell-off should sentiment turn against the
\nrupiah,\" she said.<\/p>\n
Chia predicted the rupiah will sink to 10,000 per dollar by
\nlate September.<\/p>\n
The rebound in the rupiah failed to spill over to other Asian
\ncurrencies, which were all lower against the dollar.<\/p>\n
The South Korean won ended weaker amid a decline in the Seoul
\nstock market and an overnight rise in the dollar against the yen
\nahead of the Bank of Japan's policy board meeting on interest
\nrates.<\/p>\n
After trading within a narrow range, the dollar finished at
\n1,115.40 won, up from Thursday's close of 1,114.50 won.<\/p>\n
The benchmark Korea Composite Stock Price Index fell 7.07
\npoints, or 0.97 percent, to close Friday at 722.21 on profit-
\ntaking following two days of strong gains.<\/p>\n
The Singapore dollar took a pause from its recent run-up,
\ntrading marginally lower against the U.S. dollar late Friday. The
\nU.S. currency was quoted at S$1.7143, up from S$1.7138 late
\nThursday.<\/p>\n
The Singapore dollar has risen nearly 2 percent in value since
\nJuly 26 when the Monetary Authority of Singapore said it would
\nallow for a modest appreciation in the currency in the coming
\nyear.<\/p>\n
The New Taiwan dollar, which hit a high for the month on
\nThursday, weakened Friday amid U.S. dollar demand from corporates
\nand foreign investors.<\/p>\n
The central bank stepped in and stemmed the decline, defending
\nthe local currency at its intraday low of NT$31.089, dealers
\nsaid.<\/p>\n
At the close, the U.S. dollar was quoted at NT$31.085, up from
\nNT$31.069 Thursday.<\/p>\n
The Philippine peso suffered from negative sentiment stemming
\nfrom early losses in the Indonesian rupiah and Thai baht, traders
\nsaid.<\/p>\n
The recovery of the rupiah later in the Asian day didn't
\nreverse the peso's losses but helped it recover from its intraday
\nlow at 44.935 pesos to the dollar.<\/p>\n
The dollar closed at 44.895 pesos on the Philippine Dealing
\nSystem, up from Thursday's 44.870 pesos.<\/p>\n
Concerns over political tensions in Thailand pushed the dollar
\nhigher against the baht, dealers said.<\/p>\n
The dollar was quoted at 40.805 baht late Friday, up from
\n40.725 baht the previous day.<\/p>\n
Pressure by the opposition party to dissolve the lower house
\nof parliament is expected to weigh on the baht for the next few
\nweeks, analysts said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/most-asian-monies-fall-as-rupiah-extends-rally-1447893297",
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