Peso continues to stabilize, pressure mounts on rupiah<\/p>\n
SINGAPORE (Dow Jones): The Philippine peso continued to
\nstabilize Wednesday on hopes that President Joseph Estrada may be
\nforced from office, while mounting pressure against the
\nIndonesian rupiah pushed it to a fresh two-week low.<\/p>\n
Most other Asian currencies ended mixed and range-bound in
\nthin trading conditions.<\/p>\n
Investor optimism that impeachment proceedings against
\nPhilippine President Joseph Estrada could result in his ouster
\nand bring an end to the country's political crisis were
\nsupportive for the local currency.<\/p>\n
Against the peso, the dollar closed at 49.800 pesos on the
\nPhilippine Dealing System, down slightly from 49.830 at Tuesday's
\nclose. It was the peso's strongest performance in more than a
\nweek.<\/p>\n
Estrada faces a trial on corruption charges in the Senate
\nafter his impeachment Monday by the House of Representatives. But
\nit remains unclear whether Estrada's political opponents have
\nenough votes in the Senate for a conviction.<\/p>\n
Estrada has denied charges he pocketed millions of dollars in
\ngambling payoffs and tobacco taxes.<\/p>\n
While the euphoria surrounding Estrada's impeachment helped
\nslow the peso's recent slide, "the relative stability is unlikely
\nto last," DBS Bank said in a research report.<\/p>\n
"It is a matter of time before the market realizes that
\nPresident Estrada's impeachment trial is not only likely to last
\ntill late December, but also that the odds for a guilty verdict
\nhas diminished," the bank said.<\/p>\n
The Indonesian rupiah continued its downward slide that began
\nabout three weeks ago.<\/p>\n
Late in Asian trading the dollar was quoted at Rp 9,370, up
\nfrom Rp 9,343 late Tuesday.<\/p>\n
A deteriorating political landscape in Indonesia and
\ncontinuing corporate demand for U.S. dollars to make year-end
\ndebt payments pushed the rupiah to its lowest close since Oct.
\n30.<\/p>\n
Like Estrada, Indonesian President Abdurrahman Wahid has been
\nasked by his critics to resign. Those critics have accused Wahid
\nof incompetence and corruption, and blame him for the fact that
\nIndonesia's economic growth trails that of other Asian countries.<\/p>\n
Stronger-than-expected third-quarter economic growth reported
\nby the government Wednesday failed to lift the rupiah. The
\ncountry's gross domestic product, supported by strong exports,
\ngrew by 5.12 percent on year, higher than the 4.80 percent growth
\nforecast by a panel of economists surveyed by Dow Jones
\nNewswires.<\/p>\n
The New Taiwan dollar ended marginally lower as trading volume
\nshrank for the third straight session.<\/p>\n
At the end of Asian trading, the U.S. dollar was quoted at
\nNT$32.176, compared with NT$32.168 late Tuesday.<\/p>\n
The South Korean won rose on a modest rebound in Seoul stocks.<\/p>\n
The dollar closed at 1,135.70 won, down from 1,136.30 won late
\nTuesday.<\/p>\n
The Singapore dollar weakened in a day of lackluster and
\ndirectionless trading.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1.7438, up from
\nS$1.7426 late Tuesday.<\/p>\n
The Thai baht edged higher after moving in a narrow range for
\nmost of the day. Dealers said trade was muted with no fresh news
\nto provide a clear direction for the currency.<\/p>\n
Against the baht, the dollar was quoted at 43.605 baht in late
\nAsian trading, down slightly from 43.620 baht late Tuesday.<\/p>",
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"sponsor": "Okusi Associates",
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