Asian currencies mostly down late; won feels brunt of pain
Asian currencies mostly down late; won feels brunt of pain
SINGAPORE (Dow Jones): Most Asian currencies slumped late Thursday, with the South Korean won feeling the brunt of the pain.
The Thai baht, the Philippine peso and the Indonesian rupiah were also caught in the downdraft. Resisting the pressure, the New Taiwan dollar and the Singapore dollar were firmer.
The rupiah closed lower amid fears that planned antigovernment demonstrations next week could turn violent.
Protesters are set to take to the streets next Monday to protest against President Abdurrahman Wahid's 15-month-old government.
Coming after a string of bomb attacks, most recently against churches on Christmas Eve, investors don't want to hold the local unit.
"The market is very worried about political uncertainty," a local dealer said.
The dollar finished the Asian day at Rp 9,590, up from Rp 9,545 at Wednesday's close.
The dollar rose to an intraday high of Rp 9,615 amid the political instability, but lost some of its gains near the close after concerted state bank selling of the U.S. unit.
Many participants said the selling was likely on behalf of the central bank to help prop up the ailing rupiah.
Fears of intervention by the South Korean authorities kept the won off its intraday low of 1,281 won against the dollar. An official at the Ministry of Finance and Economy said Thursday the won's steep fall against the dollar isn't appropriate considering the recent inflow of foreign stock investment funds into the currency market.
Foreigners have been net buyers of $2.45 billion in local stocks since the start of the year.
The official added that the government is keeping a close watch on the market.
The dollar finished at 1,278.10 won, sharply higher than Wednesday's close of 1,267.90 won, its highest close since Nov. 19, 1998.
The Thai baht lost further ground amid mounting uncertainty over the shape of the new cabinet and the direction of the future government's economic policy.
The dollar climbed to 43.525 baht, from 43.225 baht late Wednesday.
Controversial comments by Thailand's Prime Minister-elect Thaksin Shinawatra put a halt to the baht's post-election rally earlier this week, currency watchers said.
Thaksin reportedly said his first priority in office would be to reshape economic management, including a shift away from some measures pushed on Thailand by the International Monetary Fund as part of a multibillion dollar bailout led by the IMF in 1997.
Elsewhere, news of a kidnapping incident in the southern Philippines involving a six-year old British girl - and concerns that President Joseph Estrada's impeachment trial might be prolonged - stoked selling of the Philippine peso, dealers said.
The dollar closed at 51.325 pesos, up from 51.150 pesos Wednesday.
The Singapore dollar was buoyed by Prime Minister Goh Chok Tong's affirmation Thursday that his government won't change its declared policy of allowing the Singapore dollar to strengthen gradually against a basket of currencies of its major trade partners.
Despite the weaker regional currencies, the U.S. dollar was at S$1.7338, down from S$1.7350 late Wednesday.
The New Taiwan dollar ended at a new seven-week high as more foreign equity funds flowed into Taipei, and the central bank actively propped up the currency, dealers said.
The U.S. dollar closed down at NT$32.635, the lowest level in seven weeks, from Wednesday's close of NT$32.673.