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.