Asian currencies firmer, rupiah slides

Asian currencies firmer, rupiah slides

Netty Ismail, Dow Jones, Singapore

Most Asian currencies were firmer late Monday, with the
Singapore dollar leading the rise, relishing a much-needed
correction, dealers said.

Left out in the cold, the Indonesian currency extended last
week's relentless slide, heightening expectations that a test of
the Rp 11,000 mark against the U.S. dollar would be imminent.

At 0904 GMT (4:04 pm Jakarta time), the dollar was at Rp
10,940, about 3 percent higher than Rp 10,620 late Friday.

Elsewhere, trading was subdued, with the rest of the region's
currencies languishing in narrow ranges ahead of the U.S. Federal
Reserve's policy-setting meeting Tuesday, dealers said.

The region's currencies have priced in expectations of up to a
50 basis-point cut in U.S. interest rates.

Other Southeast Asian currencies were unruffled by the
rupiah's plunge, with the Singapore dollar's strong rebound
thwarting the pressure from the rupiah, dealers said.

After slumping to its weakest level since mid-July last week,
the Singapore dollar found solace from talk of heavy U.S. dollar
sales by DBS Bank in early trade.

From the opening level of S$1.8243, the U.S. dollar skidded to
as low as S$1.8112, before regaining its footing thereafter on
short-covering and corporate demand for the U.S. currency,
dealers said.

At 0945 GMT (4:45 pm Jakarta time), the U.S. dollar was quoted
around S$1.8185, lower than S$1.8331 late Friday. The U.S. dollar
had hit an intraday high of S$1.8359 Friday.

The U.S. dollar closed at 51.920 pesos on the Philippine
Dealing System, down from 51.955 pesos Wednesday. Philippine
markets were closed Thursday and Friday.

The Thai currency was slightly firmer at 44.680 baht per U.S.
dollar, compared with 44.730 baht late Friday.

U.S. dollar purchases by oil importers and short-covering in
the currency exerted a mild pressure on the won, which ended at
1,297.5 won to the U.S. dollar, compared with 1,296.7 won Friday,
dealers said.

Taiwan's central bank bought U.S. dollars to stymie the
strength of the local currency, dealers said. The central bank is
expected to keep the New Taiwan dollar steady ahead of
legislative elections Dec. 1.

The New Taiwan dollar ended at NT$34.526 against the U.S.
dollar, slightly stronger compared with NT$34.538 Friday.