Rupiah closes flat, off lows after donors approve loans<\/p>\n
JAKARTA (Dow Jones): The Indonesian rupiah closed flat
\nWednesday, but off intraday lows after donor nations agreed to
\nthe country's request for US$4.8 billion in loans to fill a hole
\nin next year's budget deficit, dealers said.<\/p>\n
The dollar closed at Rp 8,895 in Asia, unchanged from its
\nclose in Asia Tuesday.<\/p>\n
The U.S. unit climbed to Rp 8,950 in the morning in line with
\nits movements against other regional currencies, including the
\nThai baht and Philippine peso.<\/p>\n
However the dollar retreated to close flat after the
\nConsultative Group on Indonesia agreed in Tokyo to supply
\nIndonesia with $4.8 billion worth of soft loans for the 2001
\nbudget deficit.<\/p>\n
Traders had been concerned donors, especially the U.S., would
\nwithhold some of the aid until the end of violence in West Timor,
\nwhere three United Nations workers died last month.<\/p>\n
\"There was some long-dollar liquidation after the announcement
\non the aid,\" a local trader said.<\/p>\n
Still, the dollar should be well supported at Rp 8,870
\nThursday as most traders had expected Indonesia to receive the
\naid. Dollar resistance is seen at Rp 8,910-20.<\/p>\n
The rupiah's current weakness is more a result of continued
\npolitical concerns, rather than concerns over the balance of
\npayments situation, traders said.<\/p>\n
Most Asian currencies were weaker late Wednesday, with the New
\nTaiwan dollar dropping to a new 16-month low late in the session
\nafter the central bank withdrew active support for the local
\ncurrency in the foreign exchange market.<\/p>\n
After spending an estimated US$800 million during the day to
\ndefend the New Taiwan dollar, the Central Bank of China - the
\nlocal central bank - late in the session loosened its grip on the
\ncurrency, allowing it to fall briefly to NT$32.500 against the
\nU.S. dollar.<\/p>\n
The U.S. dollar ended domestic trade in Taipei at NT$32.383,
\nup from NT$32.260 a day earlier and marking its highest close
\nsince June 1999.<\/p>\n
The South Korean won slid to its lowest levels since May in
\nearly trading, although it managed to pare those losses after the
\nstock market staged a spectacular rebound late in the day
\nfollowing the announcement of stock-supportive measures by the
\nSouth Korean government.<\/p>\n
The dollar initially rose as high as 1,141.50 won, its highest
\nlevel since May 24. But the South Korean currency rebounded
\nsmartly at the end of the day, pushing the dollar down to 1,136.7
\nwon at the close.<\/p>\n
In Manila, the Philippine peso suffered in response to news
\nthat the International Monetary Fund had decided to cancel $300
\nmillion in loans to the nation because of Manila's failure to
\nmeet fiscal targets attached as conditions for the loan program.<\/p>\n
That, coupled with a fresh bout of political jitters after
\nopposition politicians submitted an impeachment resolution
\nagainst President Joseph Estrada, pushed the dollar as high as
\n48.700 pesos.<\/p>\n
The peso later regained some of those losses, with the dollar
\nclosing at 48.570 pesos, up from 48.300 pesos at the previous
\nclose.<\/p>\n
The Singapore dollar slipped late Wednesday as it succumbed to
\nthe weakness of its regional counterparts.<\/p>\n
In late trading, the dollar was at S$1.7560, up from S$1.7533
\nlate Tuesday in Asia.<\/p>\n
In Bangkok, the dollar rose sharply against the baht after the
\ncentral bank indicated it remains unconcerned about the weakening
\nof the local currency.<\/p>\n
Late in the day, the dollar was trading at 43.705 baht, up
\nfrom 43.365 baht a day earlier.<\/p>",
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