Rupiah closes flat, other Asian currencies mostly up<\/p>\n
HONG KONG (Dow Jones): The rupiah closed flat Thursday, as
\noptimism from an agreement by donor nations to extend $4.8
\nbillion in loans to Indonesia was tempered by local corporate
\ndemand for dollars, traders said.<\/p>\n
The dollar closed at Rp 8,895 in Asia, unchanged from its
\nclose in Asia Wednesday.<\/p>\n
The U.S. unit dropped to an intraday low of Rp 8,885 in the
\nmorning after the Consultative Group on Indonesia agreed in Tokyo
\nWednesday to supply Indonesia with $4.8 billion worth of soft
\nloans for the 2001 budget deficit.<\/p>\n
But local corporate demand for dollars around formed strong
\nsupport for the U.S. unit. Dollar support is seen at Rp 8,850
\nFriday, with resistance at Rp 8,925.<\/p>\n
Trade was muted Thursday, as many of the country's senior
\npoliticians are abroad for state visits.<\/p>\n
Political instability, including fears of a growing move to
\ntopple President Abdurrahman Wahid's one-year-old government, is
\na major reason why the rupiah is currently trading down 20
\npercent from its level at the start of the year.<\/p>\n
A parliamentary probe into Wahid's role in several financial
\nscandals is continuing weigh on sentiment.<\/p>\n
However, most traders agree the parliament is too divided to
\nuse the scandals as a springboard for the impeachment of the
\npresident.<\/p>\n
The Philippine peso and the South Korean won were weaker late
\nThursday, but most other Asian currencies edged up as regional
\nforeign exchange markets enjoyed some respite from recent
\ntumultuous dealings.<\/p>\n
The Singapore dollar, Thai baht all ended higher as regional
\nstock markets regained composure and various global political and
\neconomic troubles eased. Yet analysts say calmer trade is likely
\nonly a pause, and the regional outlook remains cloudy.<\/p>\n
Even the New Taiwan dollar managed to rise in the session,
\ndespite another sharp drop in local stocks, and an apparent
\nchange in policy at the Central Bank of China tolerating greater
\nweakness in the island's currency.<\/p>\n
Late in the day, the U.S. dollar was quoted at NT$32.325, down
\nfrom NT$32.38.<\/p>\n
The Weighted Price Index of the Taiwan Stock Exchange fell to
\na fresh 54-month low Thursday to 5081.28, extending the previous
\nsession's 4.7 percent decline by a record one-day percent loss of
\n6.5 percent.<\/p>\n
In South Korea, meanwhile, the won was weaker again, keeping
\nit at lows not seen since May. Late in the day, the U.S. dollar
\nwas quoted at 1137.1 won, compared with 1136.7 won late
\nWednesday.<\/p>\n
Korean stocks were slightly stronger on the day, with the
\nKorea Composite Stock Price Index up 0.87 point to close at
\n515.04.<\/p>\n
But the won suffered as overseas players bought U.S. dollars
\nin the forward market.<\/p>\n
Against the peso, the U.S. dollar was quoted at 48.758, up
\nfrom 48.725 pesos and against the baht it was at 43.485, down
\nfrom 43.685.<\/p>\n
Analysts say the baht could be in for further losses in days
\nahead, in part because of the relatively liquidity of the
\ncurrency and the difficulties in shorting other regional
\ncurrencies backed by high interest rates.<\/p>\n
The Singapore dollar was also stronger, meanwhile, with the
\nU.S. unit at S$1.7543 late, down from S$1.7566. Patterson said
\nthe currency could be in for weakness ahead because the Monetary
\nAuthority of Singapore will be reluctant to intervene in its
\nsupport in a period when investors are \"risk averse\".<\/p>",
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"sponsor": "Okusi Associates",
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