Rupiah and peso shrug off domestic political problems<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies strengthened
\nTuesday, buoyed by a firmer yen and the unwinding of long-dollar
\npositions following the U.S. currency's recent run-up.<\/p>\n
The Indonesian rupiah and Philippine peso shrugged off
\ndomestic problems to close higher.<\/p>\n
Dealers expect the dollar to trade between Rp 11,000 and Rp
\n11,300 Wednesday.<\/p>\n
After rising to Rp 11,635 during intraday trade, the dollar
\nclosed at Rp 11,185.<\/p>\n
A local dealer said the dollar selloff was triggered by news
\nthat Vice President Megawati Sukarnoputri's political party will
\ncall for a special parliamentary session, a move which could see
\nPresident Abdurrahman Wahid impeached.<\/p>\n
Indonesian Democratic Party of Struggle Secretary General
\nSoetjipto said the party remains disappointed with Wahid's
\nleadership.<\/p>\n
The House of Representatives will meet Wednesday and is widely
\nexpected to call for a session of the People's Consultative
\nAssembly, which can then impeach Wahid.<\/p>\n
Profit-takers helped the New Taiwan dollar reclaim some of the
\nground it lost Monday, when it fell nearly 3 percent against the
\nU.S dollar.<\/p>\n
The South Korean won and Singapore dollar rose in line with
\nthe yen, while the baht gained despite uncertainty surrounding
\nthe sacking of the Thai central bank governor.<\/p>\n
In Taipei, market participants who had loaded up on the U.S.
\ndollar during its rally Monday took profits on their long
\npositions, dealers said.<\/p>\n
The U.S. dollar closed at NT$34.072, down from Monday's 32-
\nmonth closing high of NT$34.500.<\/p>\n
The U.S. currency surged Monday after market players
\ninterpreted comments by a central bank official over the weekend
\nthat the government was prepared to let the New Taiwan dollar
\nweaken to help the ailing economy.<\/p>\n
Profit-taking also dragged the dollar lower against the yen
\nafter initial gains on weak Japanese employment data.<\/p>\n
Late in Asian trading, the dollar was quoted at 120.35 yen,
\ndown from 121.13 yen late Monday.<\/p>\n
In Bangkok, the market braced for aggressive dollar buying
\nfollowing the dismissal of central bank Governor Chatu Mongol
\nSonakul. But when the dollar demand failed to materialize,
\nplayers liquidated their long-dollar positions, lifting the baht.<\/p>\n
Toward the end of Asian trading, the dollar was quoted at
\n45.425 baht, down from 45.595 baht late Monday.<\/p>\n
Chatu Mongol clashed with Prime Minister Thaksin Shinawatra
\nover the direction of interest rates. Chatu Mongol believes that
\nlow rates are appropriate given Thailand's weakening economy, and
\nthe Bank of Thailand has kept the benchmark 14-day repurchase
\nrate at 1.5 percent for more than a year.<\/p>\n
Thaksin and the Thai finance minister, however, have expressed
\nconcern that the low rates have led to capital flight.<\/p>\n
In Manila, President Gloria Macapagal Arroyo sought to
\nreassure the country she was taking steps to halt a rash of
\nkidnappings after 20 people were snatched by Muslim separatists
\nfrom a resort off Palawan in southern Philippines.<\/p>\n
The dollar closed at 50.500 pesos on the Philippine Dealing
\nSystem, down from 50.770 pesos Monday.<\/p>\n
Philippine central bank Governor Rafael Buenaventura predicted
\nthe pressure on the peso would continue to ease Wednesday. \"It
\nwill remain stable with the gradual elimination of the premium
\nassociated with the kidnappings,\" he said.<\/p>\n
The South Korean won was helped by the yen and market optimism
\nthat General Motors Corp. may soon buy bankrupt Daewoo Motor Co.<\/p>\n
The dollar breached the 1,290 won support to finish at 1,289.6
\nwon, down from Monday's close of 1,294.0 won.<\/p>\n
The Singapore dollar was aided by stronger regional currencies
\nand talk that Qantas Airways has approached Singapore Airlines
\nand Singapore-headquartered Brierley Investments to buy their
\nstakes in Air New Zealand.<\/p>",
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"sponsor": "Okusi Associates",
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