Asian currencies mixed, rupiah regains footing
Asian currencies mixed, rupiah regains footing
Netty Ismail, Dow Jones, Singapore
Asian currencies were mixed late Tuesday, with some of the
Southeast Asian units regaining their footing after having felt
the brunt Monday of the U.S.-led retaliatory strikes of
Afghanistan.
The Indonesian rupiah was firmer and the Thai baht steady. The
Singapore dollar and the Philippine peso were weaker.
In North Asia, the South Korean won and the New Taiwan dollar
found reprieve from foreign equity fund inflows, dealers said.
Asian currencies barely reacted to the second-wave of air
strikes Monday by allied forces on Afghanistan's Taliban rulers
and top terrorist suspect Osama bin Laden's suspected training
installations, dealers said.
"Risk aversion hasn't really taken off," said Mansoor Mohi-
uddin, a regional currency strategist at UBS Warburg. "The impact
has been limited so far."
Still, sentiment remained wary, as uncertainty over the scope
and duration of the military conflict and fears of reprisals by
terrorists prevailed.
The Indonesian currency stabilized around Rp 10,100 to the
dollar for the most part of the day in the absence of any serious
violence during the protests against the U.S.-led airstrikes
Afghanistan, dealers said.
The rupiah received an added fillip late Tuesday from
suspected dollar sales by the Indonesian central bank, in its
apparent bid to counter any potential pressure from news that
police had fired warning shots and tear gas in a clash with
hundreds of protesters outside the heavily guarded U.S. Embassy
in Jakarta.
The dollar was quoted at Rp 10,065, down from Rp 10,160 late
Monday.
Fears that the protests could turn nasty and threats by
protesting Islamic militant groups to retaliate against Americans
and other Westerners sent the rupiah reeling to a 10-week low of
around Rp 10,550 Monday.
dollar.
Ignoring the rupiah for now, the Singapore dollar floundered
past the S$1.8000 level against its U.S. counterpart late Tuesday
as concerns over Singapore's deteriorating economy intensified,
dealers said.
The U.S. dollar was trading at a fresh two-month high of
S$1.8032, stronger than S$1.7939 late Monday.
Speculation was rife that the government's advance, or flash,
estimate of third-quarter gross domestic product, due Wednesday,
may be worse than market expectations after the government said
late Tuesday that it will be holding a media briefing to discuss
the economy's performance.
On the Philippine Dealing System, uncertainty over the fallout
of the U.S.-led strikes on Afghanistan prompted some companies to
hedge their debt payments and import requirements by buying
dollars, dealers said.
The dollar closed at its intraday high of 51.800 pesos, up
from 51.600 pesos Monday.
The Thai currency was marginally firmer around 44.785 baht per
dollar, compared with 44.800 baht late Monday.
In Seoul, a 2.3 percent jump in local stocks and dollar sales
by exporters bolstered the won. The dollar finished at 1,307.8
won, down from 1,311.6 won Monday.
Against the New Taiwan dollar, the U.S. currency closed at
NT$34.555, little changed from NT$34.557 Monday.