Asian currencies mixed late, host of local factors at play
Asian currencies mixed late, host of local factors at play
SINGAPORE (Dow Jones): Asian currencies turned in a mixed
performance Wednesday, with local factors taking precedence in
the absence of any clear direction from the yen.
The Indonesian rupiah edged marginally lower as members of
Parliament moved closer to ordering the impeachment of President
Abdurrahman Wahid.
The Singapore dollar and Philippine peso also posted slight
declines, while the Thai baht, Korean won and New Taiwan dollar
finished a touch stronger.
A vote ordering Wahid's impeachment looked certain to be
passed by Parliament after a majority of lawmakers formally
backed the move in a debate. Wahid's opponents have accused him
of corruption and incompetence.
The threat of street violence hung over Jakarta as a group of
4,000 Wahid supporters marched on the parliament building
demanding the proceedings against the president be halted.
Earlier in the day, mobs in East Java attacked and burned the
offices of Wahid 's political opponents and destroyed churches
and mosques.
Late in Asian trading the dollar was quoted at Rp 11,310, up
from Rp 11,185 late Tuesday.
Dealers said market players refrained from taking any big
positions in the currency due to the uncertainty surrounding the
political situation.
"The market is confused as to what to make of this," one
dealer said, noting the rupiah rallied modestly a day earlier on
the belief that Wahid's departure would boost the chances for
economic reform in Indonesia.
Currency market participants also were unsure what to make of
the sacking of Thailand's central bank governor Tuesday.
The dollar traded with a marginal downward bias Wednesday
given the expectation that new Bank of Thailand Governor
Pridiyathorn Devakula favors higher domestic interest rates.
Toward the end of Asian trading the dollar was quoted at
45.355 baht, down from 45.425 baht late Tuesday.
Prime Minister Thaksin Shinawatra Tuesday dismissed Central
Bank Governor Chatu Mongol Sonakul and replaced him with
Pridiyathorn.
In a televised interview Wednesday Pridiyathorn said interest
rates have been kept too low, for too long leading to capital
outflows and a weak currency.
Against the yen the dollar traded between Y119.95 and Y120.61
Wednesday, but finished Asian trading little changed from the
previous session. Late in Asia the U.S. currency was quoted at
Y120.29, compared with Y120.35 late Tuesday.
The New Taiwan dollar closed higher on modest U.S. dollar
selling by exporters and the central bank.
The U.S. dollar closed at NT$34.013 compared with NT$34.072
Tuesday.
The South Korean won was boosted by dollar-selling by
exporters near the end of the session.
The dollar finished at 1,289.5 won, down slightly from
Tuesday's close of 1,289.6 won.
The Philippine peso was pressured by month-end corporate
demand for dollars, traders said.
The dollar closed at 50.565 pesos on the Philippine Dealing
System, up from 50.500 pesos Tuesday. The dollar hit an intraday
high of 50.700 pesos and averaged 50.584 pesos.
The market's concerns over the recently held mid-term
elections, as well as the country's kidnapping problem following
the abduction of 20 people from a resort in the southwestern
island of Palawan, continued to subside.
The Singapore dollar edged lower in lackluster trade.
Late in Asia, the U.S. dollar was quoted at S$1.8094, up from
S$1.8088 late Tuesday.