Asian currencies down late, rupiah hit by political turmoil
Asian currencies down late, rupiah hit by political turmoil
SINGAPORE (Dow Jones): Asian currencies weakened across the board against the U.S. dollar Friday, with the deteriorating political situation in Indonesia inflicting damage on the rupiah.
Indonesian President Abdurrahman Wahid, battling a campaign effort by lawmakers to impeach him, would be firing his security minister, national police chief, and three other senior members of his cabinet, according to state-run news agency Antara.
Many market participants, fearful of holding long-rupiah positions over the weekend, dumped the currency in favor of the dollar, dealers said.
Late in Asian trading the dollar was trading at Rp 11,450, up from Rp 11,065 late Thursday.
Reports of the supposed planned sacking overshadowed supportive comments a top International Monetary Fund official made earlier in the day about Indonesia's prospects for economic recovery.
Rumors of a cabinet shakeup come amid heightened speculation of a major rift between Wahid and his top advisors over his plans to declare a state of emergency and dissolve the two main legislatures before Aug. 1, when he is to face the start of impeachment proceedings.
The Thai baht retreated as market players awaited details Friday afternoon from the Bank of Thailand on reporting requirements designed to improve the ability of the central bank to monitor foreign exchange transactions.
Dealers in Singapore who trade the baht said the requirements, to be implemented July 2, could significantly dampen trading activity if they prove to be too onerous.
Late in Asia, the dollar was trading at 44.455 baht, up from 45.340 baht late Thursday.
The baht strengthened earlier in the week after Prime Minister Thaksin Shinwatra fired central bank governor Chatu Mongol Sonakul over a rift in monetary policy. The market pushed up the baht on the view that Chatu Mongol's replacement would favor higher interest rates.
Clashes between Philippine security forces and Muslim extremists holding 20 hostages dented sentiment toward the peso Friday.
The dollar closed at 50.750 pesos on the Philippine Dealing System, up from 50.500 pesos Thursday.
Traders said some banks aggressively bought dollars as they monitored developments in the kidnapping crisis.
The military said two soldiers were killed and at least 14 were injured in Friday's clashes.
The South Korean won weakened in lackluster trading, tracking a late-session decline in the yen.
The dollar finished at 1,285.4 won, its intraday high, up from Thursday's close of 1,282.7 won.
The won initially rose in sympathy with the yen's early- morning strength around the Y118.50-per-dollar level. But market participants were forced to cover their short-dollar positions later in the day when the U.S. currency crept toward Y119.00.
The New Taiwan dollar lost ground as importers concerned about the country's economic prospects bought U.S. dollars, dealers said.
The U.S. dollar closed at NT$34.042, up from Thursday's NT$33.965. Inflows of foreign funds were seen supporting the local currency, helping it to recover from an early low of NT$34.084.
The Singapore dollar weakened in thin, range-bound trading ahead of the weekend.
Late in Asia, the U.S. dollar was quoted at S$1.8089, up from S$1.8075 late Thursday.