Rupiah lower on political concerns<\/p>\n
JAKARTA (Dow Jones): The Indonesian rupiah closed lower Monday
\namid investor concern over growing political opposition to
\nPresident Abdurrahman Wahid and security threats, traders said.<\/p>\n
After opening at Friday's close of Rp 9,225, the dollar
\nquickly moved higher on news a bomb in the North Sumatran city of
\nMedan over the weekend killed one person.<\/p>\n
The bomb, on the Indonesian island closest to Singapore,
\nsparked concern of an escalation in fighting between Muslims and
\nChristians.<\/p>\n
The dollar closed Asian trading hours at Rp 9,265, after
\nhitting an intraday high of Rp 9,275.<\/p>\n
Local corporate demand for dollars for debt repayments also
\nhelped the U.S. currency higher, traders said.<\/p>\n
Protests across Jakarta kept a bullish tone to the dollar
\nthroughout the day, traders said.<\/p>\n
Although the protests to mark the killing of students by
\nsecurity forces two years ago were peaceful, investors are
\nconcerned over increasing calls for Wahid's government to reopen
\nthe corruption trial against former President Soeharto.<\/p>\n
Meanwhile, North Asian currencies slumped under the weight of
\nfalling stock prices Monday, while impeachment proceedings
\nagainst the Philippine president hit the peso and set a bearish
\ntone for other Southeast Asian currencies.<\/p>\n
The won opened at around 1,137 per dollar and immediately
\nretreated as investors began selling South Korean stocks.<\/p>\n
By the end of Asian trading, the dollar had climbed to 1,138.0
\nwon, up from Friday's close of 1,134.4 won.<\/p>\n
Dollar-selling by local exporters prevented the U.S. currency
\nfrom climbing above 1,139 won. However, the dollar could break
\nabove the 1,140 won level Tuesday if New York stock prices turn
\nin another weak performance Monday, dealers said.<\/p>\n
In Taipei, falling share prices finally took their toll on the
\nNew Taiwan dollar, which had closed higher for eight straight
\nsessions before Monday.<\/p>\n
The U.S. dollar closed at NT$32.160, up from NT$32.062 late
\nFriday.<\/p>\n
The local dollar had appreciated nearly 1 percent in the
\nprevious eight sessions as investors accumulated short U.S.
\ndollar positions. Monday's 4.9 percent drop in Taiwan stocks
\npressured the New Taiwan dollar and prompted a squeeze in short
\nU.S. dollar positions, dealers said.<\/p>\n
The Philippine peso remained vulnerable to political
\ndevelopments in Manila. The dollar closed at 50.350 pesos on the
\nPhilippine Dealing System, up from 50.200 pesos at the previous
\nclose.<\/p>\n
Shortly after peso trading closed the Philippine House of
\nRepresentatives endorsed the articles of impeachment against
\nEstrada over allegations that he received millions of dollars in
\nillegal payoffs.<\/p>\n
The Singapore dollar was slightly lower against its U.S.
\ncounterpart in a tight trading range.<\/p>\n
Late Monday in Asia, the U.S. dollar was quoted at S$1.7425,
\nup from S$1.7394 late Friday.<\/p>\n
With the outcome of the U.S. presidential election likely to
\nbe further delayed, the U.S. dollar is expected to trade in a
\nnarrow range in a generally directionless market, dealers said.<\/p>\n
Against the Thai baht, the dollar was quoted at 43.645 baht
\nlate Monday in Asia, up from 43.575 baht late Friday.<\/p>\n
Investor sentiment has been running against the baht in the
\nwake of a corruption investigation of Thaksin Shinawatra,
\nfrontrunner in upcoming election for prime minister.<\/p>",
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