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.