Recouping stocks bolster Asian currencies<\/p>\n
SINGAPORE (Reuters): Regional stock markets showed solid gains
\nacross the board on Tuesday and as overseas investors tentatively
\ndipped a toe into the equities pool, local currencies firmed.<\/p>\n
A solid 66-point gain in the Dow Jones on Monday together with
\na better performance in Hong Kong after its shakeout saw flows
\nacross the foreign exchanges and light but persistent demand for
\nrecently beleaguered regional currencies.<\/p>\n
Indonesia remained firmly in the spotlight as international
\nefforts to put the country back on track to IMF-backed economic
\nreforms gathered pace.<\/p>\n
U.S. Deputy Treasury Secretary Lawrence Summers said after a
\nmeeting with President Soeharto that the Indonesian leader
\nrecognized the need for strong measures to restore investor
\nconfidence.<\/p>\n
Indonesian Finance Minister Mar'ie Muhammad said talks with
\nthe IMF had been \"very positive\" and in terms of fundamental
\nthinking there was no difference between the Fund and the
\ngovernment.<\/p>\n
The Indonesian rupiah recovered to 7,900 per dollar from early
\nlows around 9,500 but dealers said trading was very subdued as
\nplayers awaited further details of the IMF talks.<\/p>\n
Jakarta stocks closed over nine percent higher amid optimism
\nabout the talks, although the market will have to wait until
\nThursday before the full outcome of the talks is announced.<\/p>\n
Elsewhere in Southeast Asia, the Thai baht crept back from its
\nlows as exporters sold dollars amid talk of possible intervention
\nby the central bank.<\/p>\n
The baht was at 55.70 per dollar onshore against 56.35 late on
\nMonday. The offshore rate was at 53.45 against 56.10.<\/p>\n
\"I think there was probably some intervention in the market,
\nbut the region is steady so that could be factor. Also there are
\nsome exporters selling,\" said a dealer at a large Thai bank.<\/p>\n
The Malaysian ringgit was at 4.6050 to the dollar against
\n4.6500\/800 late Monday.<\/p>\n
Dealers said its fall was being cushioned by dollar sales by
\nU.S. funds above the 4.70 level, while gains were blocked by
\ninterbank and corporate dollar buying at the 4.55 level.<\/p>\n
The Singapore dollar firmed to 1.7735 to the U.S. dollar from
\n1.8010 late on Monday as the stock market recovered from Monday's
\ndrop of nearly nine percent.<\/p>\n
The Philippine peso extended recent gains, rising to 43.55 per
\ndollar against a previous 43.95 close as the central bank
\ncontinued to support the currency through swap contracts with
\nselected banks.<\/p>\n
Philippine central bank Governor Gabriel Singson said the peso
\nwas still undervalued even after its four-day upturn.<\/p>\n
\"I think it's undervalued. We want a rate devoid of panic and
\nspeculation then that is a free market rate,\" he told reporters.<\/p>\n
In north Asia, the Hong Kong dollar was steady to a touch
\nfirmer at 7.7465 to the U.S. dollar. Forwards and interest rates
\neased as the stock market recovered, absorbing the news of
\ninvestment bank Peregrine's collapse.<\/p>\n
The South Korean won slipped to 1,763 per dollar from a
\nprevious 1,738 close as traders kept a wary eye on developments
\nelsewhere, but its downside was capped by exporter dollar sales.<\/p>\n
The central Bank of Korea said usable foreign reserves were
\n$8.87 billion at the end of 1997, compared with $29.42 billion a
\nyear ago and $7.26 billion at the end of November.<\/p>\n
The following table shows the drop in value of Asian
\ncurrencies since the crisis began in July. Currency movements are
\nin percentage terms and reflect the local unit's fall against the
\ndollar, not the dollar's rise.<\/p>\n
Currency Current value Move since July 1.<\/p>\n
-------------------------------------------------------<\/p>\n
Indonesian rupiah 8,100.00 -70.00%<\/p>\n
Thai baht 55.75 -53.54%<\/p>\n
Korean won 1,763.00 -49.63%<\/p>\n
Malaysian ringgit 4.61 -45.28%<\/p>\n
Philippine peso 43.55 -39.15%<\/p>\n
Taiwan dollar 34.37 -19.25%<\/p>\n
Singapore dollar 1.78 -19.62%<\/p>\n
Hong Kong dollar 7.75 -0.02%<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/recouping-stocks-bolster-asian-currencies-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }