Asian currencies mixed late, renewed weakness in won
Asian currencies mixed late, renewed weakness in won
SINGAPORE (Dow Jones): Asian currencies were mixed late
Monday, with the South Korean won and the New Taiwan dollar
feeling the brunt of a selloff on their respective local bourses,
dealers said.
In Southeast Asian markets, the Thai baht and the Singapore
dollar were stronger, while the Indonesian rupiah and the
Philippine peso were weaker.
Despite the market's nervousness about further social unrest
in Jakarta - following a 12 percent fuel price hike over the
weekend and public outrage over a court's decision last week to
dismiss the corruption trial of former President Soeharto - the
rupiah's losses were limited Monday
Still, the dollar managed to regain its ground, as it edged up
to Rp 8,800, from Rp 8,775 late Friday.
There was some dollar-buying by corporates at Rp 8,775 to
service debt and for import needs, although demand wasn't strong.
The market also ignored the handing down of the draft 2001
budget, with almost all figures revealed already previously
announced.
Dealers expect a range of Rp 8,750 to Rp 8,850 Tuesday.
rupiah's losses were limited Monday.
A credit ratings upgrade, which came at the higher end of
expectations, provided some respite for the rupiah, but only
temporarily.
Standard & Poor's Corp. Monday raised its long-term and short-
term foreign currency ratings on Indonesia to single-B-minus and
C, respectively, after the London Club agreed to restructure $340
million in debt last week. S&P had previously assigned selective
default ratings on both the long and short-term ratings.
"It's a long way off to investment grade, but it's still
positive to sentiment that you get a double-notch upgrade," said
Mansoor Mohi-uddin, regional currency strategist at UBS Warburg.
The South Korean won succumbed to renewed pressure as the
local bourse plummeted by almost 4 percent, following steep
losses on Wall Street last Friday, and on dollar-buying by
offshore participants in the non-deliverable forward market.
Fresh doubts about South Korea's efforts to sell its
distressed assets, an important part of the government's economic
recovery program, had also cast a shadow on the won, dealers
said.
The dollar finished at 1,118 won, up from Friday's close of
1,115 won.
The dollar is set to trade between 1,115 won and 1,125 won for
the rest of the week, Oh said, adding, however, that he doubted
the dollar could head toward 1,125 won this week, unless there
are "fresh bad factors."
After earlier yielding to the pressure from the Taipei bourse,
which sank 2.6 percent to a near 20-month low, intervention by
the local central bank helped the New Taiwan dollar recoup its
losses, dealers said.
The U.S. dollar finished at NT$31.314, little changed from
Saturday's close of NT$31.316. The U.S. dollar had hit an
intraday high of NT$31.326.
In Southeast Asia, hopes for a short-term rally in the Thai
currency were dashed again, after the dollar failed to be
suppressed below the 42 baht support level amid renewed political
jitters. The dollar had briefly crossed below the 42 baht level
mark several times last week.
Around 0905 GMT, the dollar was at 42.175 baht, still below
42.220 baht late Friday. Dollar long-liquidation earlier in the
day had pushed the dollar below 42 baht psychological support,
dealers said.
Against the Singapore dollar, which largely mirrored the
baht's movements, the U.S. currency slipped to S$1.7397, from
S$1.7417 late Friday.
On the Philippine Dealing System, the dollar was at 46.280
pesos, up from 46.150 pesos Friday.