Rupiah gets boost from IMF, others Asian currencies fall<\/p>\n
SINGAPORE (Dow Jones): International Monetary Fund acting
\nchief Stanley Fischer gave the rupiah a shot in the arm Monday
\nwith upbeat comments about prospects for economic reform in
\nIndonesia.<\/p>\n
But most other Asian currencies finished local trading hours
\nlower under the weight of falling stock markets.<\/p>\n
Fischer, in Jakarta to meet with President Abdurrahman Wahid
\nand several top ministers, said earlier Monday he was confident
\nthe government would continue to carry out the reforms necessary
\nto win approval of a US$400 million IMF loan.<\/p>\n
Indonesia's course would allow the rupiah to \"strengthen in
\ndue course,\" he added.<\/p>\n
His words had an immediate impact on the Indonesian currency,
\nwhich had fallen to a six-month low against the dollar last week.<\/p>\n
Late in Asia the U.S. dollar was quoted at Rp 7,845, down from
\nRp 8,005 late Thursday. Most markets in Asia were closed Friday
\nfor Good Friday.<\/p>\n
The rupiah has been at the mercy of currency traders in recent
\nmonths. Nothing has changed fundamentally in the Indonesian
\neconomy yet the currency has moved from Rp 7,300 to the dollar to
\nRp 8,000, said Vincent Low, foreign-exchange and interest-rate
\nstrategist at Merrill Lynch in Singapore.<\/p>\n
\"The volatility reflects some pretty jumpy investor
\nsentiment,\" he said.<\/p>\n
Dealers said market participants moved out of the currency
\nlast week as they were afraid of excessive rupiah exposure prior
\nto the long holiday weekend.<\/p>\n
\"Now with the statements from Fischer they're buying the
\nrupiah back,\" a dealer at a foreign bank said.
\nJust as the market may have \"overshot\" in pushing the rupiah to
\n8,000 to the dollar, Fischer's comments by themselves may not
\nhave brought the currency back to its fair value, Low said.
\n\"The market's going to need a lot of concrete proof before the
\nsignificant overhang of doubt goes away,\" he said.<\/p>\n
In Northern Asia, falling stock prices weighed on the New
\nTaiwan dollar. The Weighted Price Index of the Taiwan Stock
\nExchange fell 3.4 percent.<\/p>\n
The Taiwan central bank moved in to halt the decline in the
\nNew Taiwan dollar, which was hit by foreign equity outflows.<\/p>\n
\"The central bank capped the (U.S.) dollar buying, but the
\ndemand was still very strong,\" a dealer at a foreign bank said.<\/p>\n
The currency hit an intraday low of 30.596 to the dollar
\nbefore recovering slightly at the close. The U.S. currency was
\nquoted at NT$30.566, up from 30.530 the previous session.<\/p>\n
The South Korean won finished slightly lower in thin trading.<\/p>\n
End-of-month dollar selling by local exporters during the
\nmorning session pulled the dollar to an intraday low of 1,107.80
\nwon.<\/p>\n
But dollar-buying by state-run Korea Development Bank
\nprevented the dollar from falling further, prompting local banks
\nto cover short dollar positions, traders said.<\/p>\n
Late Monday the dollar was quoted at 1,108.80 won, compared
\nwith 1,108.50 won Friday.<\/p>\n
The rise of the Singapore dollar in recent trading sessions
\ncame to an end Monday as the U.S. currency moved back above the
\npsychological level of S$1.7000.<\/p>\n
Dealers said the Singapore dollar's rally last week was
\noverdone and market participants realized they had better
\nposition themselves for further interest rate hikes expected in
\nthe U.S.<\/p>\n
The U.S. dollar closed at S$1.7002, up from S$1.6965 at the
\nend of the previous session.<\/p>\n
The Philippine peso closed lower against the dollar as banks
\nheld onto their long dollar positions.<\/p>\n
The dollar closed at 41.275 pesos at the Philippine Dealing
\nSystem, up from 41.230 pesos.<\/p>\n
The Thai baht finished lower in quiet trading as market
\nparticipants waited for economic data due out later this week.<\/p>\n
The dollar was quoted late Monday at 37.935 baht, up from
\n37.920 baht.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-gets-boost-from-imf-others-asian-currencies-fall-1447893297",
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