Rupiah sets weaker tone on Asian monies<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies slipped late on
\nTuesday, with the Indonesian rupiah setting a weaker tone amid
\nlingering political doubts.<\/p>\n
But stronger-than-expected second-quarter economic growth in
\nthe Philippines cushioned the peso's slide, dealers said.<\/p>\n
Similarly, news that two of Singapore's largest banking groups
\nare out of the race to own the Hong Kong retail assets of Chase
\nManhattan helped mitigate the Singapore dollar's losses, keeping
\nit supported around S$1.7200 to the U.S. currency, dealers said.<\/p>\n
In North Asia, the South Korean won extended Monday's gains,
\nthanks to continued dollar-selling by exporters and a resumption
\nin speculative trading by local foreign-exchange dealers, dealers
\nsaid.<\/p>\n
The rupiah led the Southeast Asian markets' descent, dealers
\nsaid.<\/p>\n
Just as investors were assessing the political risks in
\nIndonesia - following last week's cabinet reshuffle and a
\nparliamentary probe into financial scandals linked to President
\nAbdurrahman Wahid - the new chief economics minister's reported
\nremarks that he wants to re-negotiate a pact with the
\nInternational Monetary Fund fueled an early selloff in the
\nrupiah.<\/p>\n
Rizal Ramli, a known IMF critic, was quoted by the New York
\nTimes as saying he wanted to discuss limiting the IMF's role in
\nIndonesia.<\/p>\n
The dollar shot up to as high as Rp 8,345, compared with Rp
\n8,245 late Monday, but sank back below Rp 8,300 after Rizal
\ndenied there were plans to revise the agreement with the IMF.<\/p>\n
Dollar-demand from onshore banks around Rp 8,250, however,
\npushed the U.S. currency back to Rp 8,300 around 0815 GMT,
\ndealers said.<\/p>\n
The Philippines' stronger-than-expected economic performance
\nin the second quarter failed to boost the peso, although it kept
\na rein on the currency's losses, dealers said.<\/p>\n
The dollar was at 45.030 pesos late Tuesday, up slightly from
\nMonday's close of 45.020 pesos.<\/p>\n
Elsewhere, news that DBS Group Holdings Ltd. and Oversea-
\nChinese Banking Corp. are out of the race to own the Hong Kong
\nretail assets of Chase Manhattan Bank failed to boost the
\nSingapore dollar, although it softened the blow from the rupiah's
\nweakness, dealers said.<\/p>\n
The U.S. currency, which had earlier faced resistance around
\nS$1.7200 on selling in the U.S. dollar by local banks, has probed
\nhigher to S$1.7213 around 0845 GMT, up from S$1.7181 late Monday.<\/p>\n
The Thai baht wasn't spared from its ailing Southeast Asian
\npeers, as it weakened to 40.875 baht to the dollar from 40.775
\nbaht late Monday.<\/p>\n
Bucking the downtrend in Asia, the South Korean won closed at
\na 16-week high on continued month-end dollar-selling by local
\nexporters, as local dealers ended a halt to speculative trading a
\nday earlier than expected.<\/p>\n
The dollar finished at 1,110.10 won, its lowest close since
\nMay 10 when it finished at 1,109.10 won. The U.S. currency ended
\nMonday at 1,111.80 won.<\/p>\n
The New Taiwan dollar closed little changed as selling in the
\nU.S. currency by the central bank countered the downward pressure
\nfrom the slumping local stock market, dealers said.<\/p>\n
The U.S. dollar ended at NT$31.070, compared with NT$31.072
\nlate Monday.<\/p>",
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