Asian currencies mostly down late; no U.S. election relief
Asian currencies mostly down late; no U.S. election relief
SINGAPORE (Dow Jones): Most Asian currencies failed to hold on to their recent gains late Tuesday, with the Philippine peso feeling the brunt of the pain as it resumed its downward spiral following Monday's brief rally.
Indonesian rupiah closed lower Tuesday as local corporate demand for the dollar and the weakness of other regional currencies offset Bank Indonesia's vow to prop up the local unit.
The dollar closed at Rp 9,255 in Asia, up from Rp 9,140 late Monday.
Dealers said local companies accumulated the dollar to pay their maturing dollar debts, while offshore participants bought the dollar against most regional currencies after the peso tumbled.
"Bank Indonesia's vow to bring the dollar to Rp 8,500 at month end fails to incite dollar selling," said a dealer with a foreign bank. "It, however, discouraged further dollar bids above Rp 9,250."
Bank Indonesia's acting Governor Anwar Nasution said Tuesday the nation's central bank will utilize all available mechanisms, including interest rate hikes, dollar sales, and the stepping up of on-site inspection on banks' dollar-rupiah trading to prop the local unit.
Dealers expect pressure on the rupiah to continue amid domestic political uncertainties and the dollar's global strength.
Adding to domestic political bickering is the plan for a parliamentary team to on Nov.15 question President Abdurrahman Wahid over the so-called Buloggate scandal.
The parliament may call a special session to impeach Wahid if it finds he is involved in the case, which involves the transfer of $4 million of fund from the state-logistic agency Bulog to several people close to Wahid. Wahid has denied any involvement in the scam.
Dealers expect the dollar to trade between Rp 9,200 and Rp 9,400 Wednesday.
Resisting downward pressure from its regional peers, the New Taiwan dollar was stronger, thanks to a 4 percent jump on the local stock market.
In the Philippines, the peso suffered a relapse following its 5 percent rebound Monday, as the market showed its aversion to President Joseph Estrada's resolve to hold on to power.
The embattled president late Monday denied reports that negotiations were underway with opposition, quashing hopes of a quick resignation.
The dollar closed at 49.250 pesos on the Philippine Dealing System, up from Monday's close of 48.050 pesos. The dollar hit an intraday high of 49.370 pesos Tuesday.
The region's weakness stung the Singapore dollar and the Thai baht, which dealers said were technically overbought following their recent recovery.
The dollar was rose to 43.625 baht, from 43.305 baht late Monday.
Against the Singapore dollar, the U.S. currency climbed to S$1.7365 from S$1.7315 late Monday.
Mounting worries over the progress of South Korea's restructuring efforts dented the won, dealers said. The dollar finished at 1,136.10 won, up from Monday's close of 1,132.70 won.
The U.S. dollar closed at NT$32.149, down from NT$32.159 Monday.