SE Asian currencies fall in line with Japanese yen<\/p>\n
SINGAPORE (Dow Jones): Southeast Asian currencies are lower
\nagainst the U.S. dollar late yesterday, in line with losses
\nposted by the Japanese yen.<\/p>\n
The one exception to the rule is the thinly traded Indonesian
\nrupiah, which managed to gain nearly 2 percent on the day after
\ntwo protest demonstrations remained peaceful.<\/p>\n
Followers of the Indonesian Democratic Party's (PDI) ousted
\nleader, Megawati Soekarnoputri, held peaceful rallies to
\ncommemorate the riots of July 27, 1996, which were sparked when
\ngovernment-backed opponents of Megawati in the PDI forcibly
\nevicted her supporters from party headquarters in Jakarta. Relief
\nat the peaceful conclusion of the rallies helped boost the
\nrupiah.<\/p>\n
\"There was some apprehension in the morning, but nothing came
\nof that,\" said Paul Alapat, senior economist with Indosuez WI
\nCarr in Singapore. \"The focus in Indonesia has now shifted to
\ntalks on Thursday and Friday between donor countries.\"<\/p>\n
Members of the Consultative Group on Indonesia, a grouping of
\ncountries that lend money to the country, are meeting in Paris
\nthis week and are expected to increase significantly the amount
\nof loans they provide to Indonesia this year from US$5.3 billion
\nlast year.<\/p>\n
In a late trading, the U.S. dollar is quoted at 13,850 rupiah,
\ndown from 14,100 rupiah late Friday.<\/p>\n
Aside from Indonesia, analysts say the focus for the rest of
\nthe regional currency markets remains on Japan.<\/p>\n
\"Until we have some clarity on Japan, it will pretty much
\novershadow any country-specific issues,\" said Indosuez WI Carr's
\nAlapat.<\/p>\n
The dollar rose against the yen Monday on the back of
\nlingering worries over whether premier-in-waiting Keizo Obuchi -
\nelected president of Japan's ruling Liberal Democratic Party on
\nFriday and sure to become the next prime minister - will be able
\nto pull Japan out of its economic doldrums.<\/p>\n
Market talk that Obuchi may be struggling to find a finance
\nminister for his new cabinet added to yen bearishness, dealers
\nsaid.<\/p>\n
\"Japan is one of the region's largest export markets, so if
\nthe yen falls, the regional currencies will fall, as well,\" said
\nMarshall Mays, chief strategist with Nikko Securities in
\nSingapore.<\/p>\n
However, Mays noted that regional currencies generally should
\nnot mirror the magnitude of the yen's losses.<\/p>\n
\"It is not a one-to-one relationship,\" said Mays. \"It is more
\nlike a two-to-one relationship, roughly.\"<\/p>\n
He added that the large losses racked up by Southeast Asian
\ncurrencies since June were more in response to the speed of the
\ndepreciation of the yen, rather than the simple fact that it was
\nfalling against the dollar.<\/p>\n
The Singapore dollar led the regional charge down the yen's
\npath Monday, posting bigger losses than any other currency.<\/p>\n
In a late trading, the U.S. dollar is quoted was S$1.7243, up
\nfrom S$1.7099 late Friday.<\/p>\n
A dealer at a Hong Kong-based bank in Singapore said there was
\nmuch talk in the market about cross plays against other regional
\ncurrencies, at the expense of the Singapore dollar.<\/p>\n
The intraday charts certainly bear that out,\" said the trader.
\n\"The ringgit and the baht both came off intraday lows late in the
\nday, and the rupiah actually appreciated.\"<\/p>\n
In a late trading, the dollar is quoted at 41.2050 baht, up
\nfrom 40.8050 baht Friday.<\/p>\n
Against the ringgit, the U.S. dollar is quoted at 4.1502
\nringgit, up from 4.1350 ringgit late Friday.<\/p>\n
On the Philippine Dealing System, the U.S. dollar ended at
\n42.180 pesos, up from 42.110 pesos on Friday.<\/p>\n
Meanwhile, in Northeast Asia, the South Korean won rose to a
\nnew high for the year against the U.S. dollar.<\/p>\n
The dollar ended the day at 1,209 won, sharply lower than
\nFriday's close of 1,245 won.<\/p>\n
Traders in Seoul said that - in addition to the normal,
\nend-of-month dollar sales by exporters repatriating foreign
\nearnings - foreigners have continued to exchange dollars for won
\nto buy local assets as they expand into South Korea, which has
\nopened its doors to more foreign investment in the wake of the
\nfinancial crisis there.<\/p>\n
Abiding by the reform program agreed upon with the
\nInternational Monetary Fund late last year as part of a US$58.35
\nbillion bailout fund, South Korea has opened its stock, bond and
\nreal estate markets to foreign investors.<\/p>\n
The U.S. dollar continued its gains against the New Taiwan
\ndollar, despite central bank intervention in the currency market
\nto the tune of US$50 million to US$60 million throughout the day,
\naccording to traders in Taipei.<\/p>\n
The U.S. currency's advance has been aided by yen weakness and
\nstrong corporate demand locally for the U.S. currency, traders
\nsaid.<\/p>\n
The U.S. dollar ended at NT$34.409, up from NT$34.361 on
\nFriday.<\/p>",
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