Asian currencies mixed late, new Estrada charges hit peso
Asian currencies mixed late, new Estrada charges hit peso
SINGAPORE (Dow Jones): Asian currencies were mixed Friday,
with the Philippine peso suffering from a new flurry of
corruption allegations against President Joseph Estrada.
The New Taiwan dollar rose for the eighth straight session.
The Singapore dollar and Indonesian rupiah also edged higher,
while the South Korean won and Thai baht lost ground.
The Indonesian rupiah strengthened on dollar sales by state
banks believed to be acting on behalf of the central bank.
Persistent dollar bids from local corporations, however,
limited the dollar's decline, dealers said.
The dollar closed at Rp 9,225 in Asia, down from its close
Thursday at Rp 9,250.
Bank Indonesia's acting Governor Anwar Nasution said Friday
the central bank would continue selling dollars to prop up the
rupiah. He, however, didn't say whether the bank intervened in
the market Friday.
Hopes that the ailing Philippine peso might build on gains
made earlier in the week faded when Estrada found himself having
to fend off fresh charges.
Estrada denied that he received a US$20 million kickback from
the sale of the country's largest telephone company, and pocketed
$16 million from a controversial stock sale.
The new allegations came on the heels of charges last month
that Estrada accepted millions in dollars in payoffs from illegal
gambling operators.
While Estrada for weeks steadfastly denied accepting any
gambling money, he said Friday that a provincial governor did
offer him the payoffs, which he said he refused. It is a criminal
offense in the Philippines for a public official to fail to
report a crime such as bribery.
Against the peso, the dollar closed at 50.200 pesos Friday, up
from 49.950 pesos late Thursday. The peso had stabilized below
the 50-per dollar level for most of the week on hopes that
Estrada might resign.
However, Estrada reiterated Friday that he plans to finish the
remaining four years of his term despite impeachment proceedings
being brought against him by the House of Representatives.
UBS Warburg recommended its clients buy dollars below the 49
peso level "as Estrada's refusal to resign continues to weigh on
the currency."
Also contributing to the peso's decline was talk that two
large banks may be facing liquidity problems and have experienced
heavy withdrawals.
In Taipei, the New Taiwan dollar benefited from exporter sales
of U.S. dollars.
The U.S. currency ended at NT$32.062, the lowest closing level
in more than two weeks and down from NT$32.065 Thursday.
Taiwan's central bank was spotted in the market in the morning
buying U.S. dollars to slow the local dollar's rise, dealers
said.
Importer buying of U.S. dollars helped push the South Korean
won lower, dealers said.
The dollar finished at 1,134.40 won, up from Thursday's close
of 1,132.10 won.
The dollar's advance surprised some dealers, who said they
expected continued gains in the won as the pace of economic
reforms in South Korea picks up.
Importer dollar buying also helped the U.S. currency gain on
the Thai baht.
Late in Asia the dollar was quoted at 43.575 baht, up from
43.535 baht late Thursday.
Still, the baht is likely to find support against the dollar
on foreign inflows for acquisitions of Thai companies, dealers
said.
The U.S. dollar traded in a narrow range against the Singapore
dollar, drifting lower late in the day on dollar-selling by U.S.
investors and a UK bank, dealers said.
Late Friday in Asia the U.S. dollar was quoted at S$1.7403,
down from $1.7415 late Thursday.