Asian currencies mixed late, beleaguered rupiah plunges

Asian currencies mixed late, beleaguered rupiah plunges

TOKYO (Dow Jones): The Indonesian rupiah took the spotlight
away from the yen and other regional currencies in Asia on Friday
as the embattled rupiah plunged through key support of Rp 10,000
against the dollar to its lowest level since early October 1998
at the height of the Asian financial crisis.

The New Taiwan dollar, the Philippine peso and the Singapore
dollar also fell against the dollar, partly in sympathy with the
rupiah. But, the Korean won and the Thai baht rose against the
U.S. currency as the yen regained lost ground.

In Jakarta, Indonesia's ongoing political and social woes
played havoc with the rupiah, pushing the dollar above the
psychologically important Rp 10,000 level even as Bank Indonesia
spent roughly $30 million to defend the beleaguered currency via
direct intervention in the market.

In Taipei, the New Taiwan dollar weakened against the U.S.
dollar on the decline in Taiwanese stock prices as foreign banks
bought the U.S. currency on behalf of foreign equity investors
who had sold local stocks, traders said.

The weighted price index of the Taiwan Stock Exchange ended
down 30.59 points, or 0.54 percent, at 5680.43, mostly due to the
2.5 percent slide in the U.S. Nasdaq composite index late
Thursday.

In late Asian trading on Friday, the U.S. dollar was quoted at
NT$32.401, up from NT$32.381 Thursday.

In Manila, the Philippine peso was lower against the dollar as
Philippine corporations bought the U.S. currency and the foreign
exchange markets fully absorbed the impact of the central bank's
cut in overnight rates Thursday, traders said.

Going forward, the peso is also likely to be pressured by
lingering concerns about the Philippines government's seriousness
in dealing with the nation's economic and financial challenges.

Late in Asia, the dollar was quoted at 48.065 pesos, up from
Thursday's close of 47.910 pesos on the Philippine Dealing
System.

In Singapore, the Singapore dollar dropped slightly against
the U.S. dollar in anticipation that Singapore Telecommunications
Ltd. could make a A$16 billion-plus bid for Australia's Cable &
Wireless Optus Ltd. as early as this weekend.

SingTel's bid for Australia's Optus is expected to generate
some selling of Singapore dollars for foreign currencies in order
to complete the transaction, traders said.

Late in Asia Friday, the U.S. dollar was quoted at S$1.7575,
up from S$1.7566 late Thursday.

In Seoul, the Korean won bucked the general trend of Asian
currency weakness, strengthening against the dollar on the yen's
rebound and on sentiment that the local currency may have been
oversold.

The dollar closed at 1,268.8 won, down from Thursday's close
of 1,273.5 won.

The yen, meanwhile, recovered from its overnight losses,
rising as high as Y119.15 against the dollar late Friday on
Japanese investors' yen repatriation, dollar-long position
unwinding, and comments from Japanese economy minister Taro Aso
favoring a strong yen.

Late in Asia, the dollar was trading at Y119.62, nearly
unchanged from Y119.65 late Thursday in New York.

In Bangkok, the Thai baht was higher against the dollar ahead
of the Thailand government's expected announcement of details on
its planned central asset management corporation.

Citing banking industry sources, the Nation newspaper reported
earlier Friday that the CAMC will buy 200 billion baht of
nonperforming loans from private-sector banks at book value, or
around 160 billion baht.

Against the baht, the dollar was last quoted at 43.515 baht,
down from 43.520 baht late Thursday.