Rupiah lower on foreign debt repayment, other monies mixed<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed late
\nThursday, as market participants search for direction in the
\nabsence of a final verdict in the U.S. presidential election.<\/p>\n
Most Asian currencies opened weaker on expectation of a
\ndecline in regional bourses following an overnight decline in
\nU.S. equity markets and a variety of local factors.<\/p>\n
However, many currencies recovered in the afternoon as
\ninvestors and interbank participants unwound long U.S. dollar
\npositions.<\/p>\n
The Indonesian rupiah closed lower as local companies bought
\ndollars to repay foreign debt, traders said.<\/p>\n
The dollar finished higher at Rp 9,245 in Asia, up from Rp
\n9,195 late Wednesday, after trading in a tight range of between
\nRp 9,210 and Rp 9,260.<\/p>\n
Traders said state banks were seen selling dollars at the
\nhigher end of the range, possibly on behalf of the central bank.<\/p>\n
Profit-taking also kicked in at these higher levels, as
\noffshore players liquidated their long-dollar positions.<\/p>\n
Threats by the central bank to intervene in the foreign
\nexchange market, and tightened enforcement of rules governing
\nmaximum forward positions, are stopping offshore investors from
\nbuilding up huge speculative positions against the rupiah.<\/p>\n
Still, with state banks set to repay about $2 billion in debt
\nby the end of this year, the dollar is set for further gains,
\nanalysts say.<\/p>\n
Instability in the local political situation, notably a higher
\ncourt's decision to reopen former President Soeharto's corruption
\ntrial, continued to weigh on the rupiah.<\/p>\n
Investors are concerned that reopening the trial could lead to
\nrenewed clashes between pro and anti-Soeharto supporters.<\/p>\n
Soeharto's youngest son, Hutomo Mandala Putra, also known as
\nTommy, remained on the run Thursday, after the Supreme Court
\nhanded him an 18-month sentence for corruption.<\/p>\n
The Philippine peso and Thai baht opened weaker on remarks by
\ntop local officials, dragging the Singapore dollar lower.<\/p>\n
The U.S. dollar rose to a high of 50.87 peso before banks
\nmoved to liquidate their long-dollar positions on fears the
\ncentral bank would intervene. The dollar ended at 49.950 pesos on
\nthe Philippine Dealing System, down from 50.100 pesos at the
\nprevious close.<\/p>\n
In Thailand, the baht initially fell following remarks by a
\ncentral bank official late Wednesday that Republican candidate
\nGeorge W. Bush's victory could have a negative indirect impact on
\nthe Thai economy and currency.<\/p>\n
The dollar rose to high of 43.75 baht before retreating in
\nline with the peso on selling by onshore banks. It fell to a low
\nof 43.535 baht but recovered on short-covering in late trading to
\n43.58 baht, nearly unchanged from 43.57 baht late Wednesday.<\/p>\n
The Singapore dollar broadly mirrored the moves in the peso
\nand baht during most of the Asian session, but remained weaker on
\nthe day due to net outflows from the local stock market.<\/p>\n
At 1022 GMT, the U.S. dollar was trading at S$1.7415, up from
\nS$1.7375 late Wednesday. The U.S. unit's intraday low was
\nS$1.7380. Dealers said they expect the U.S. dollar to be capped
\nat S$1.7420 overnight, with demand from Singapore companies
\nproviding support in the near-term around S$1.7350.<\/p>\n
North Asian currencies ended higher as their stock markets
\nbucked the declining trend in most Asian bourses following the
\novernight decline in U.S. equities.<\/p>\n
The U.S. dollar closed at NT$32.065, down from NT$32.119
\nWednesday. Dealings were valued at US$608.5 million, up from
\nUS$509 million Wednesday.<\/p>\n
The dollar finished at 1,132.10 won, down from Wednesday's
\nclose of 1,136.60 won and its lowest finish since Oct. 20, when
\nit ended at 1,128.50 won.<\/p>\n
Dealers expect the dollar to continue slipping Friday and said
\nit will likely trade between 1,128 won and 1,134 won.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-lower-on-foreign-debt-repayment-other-monies-mixed-1447893297",
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