Asian currencies mostly up late on rupiah, yen gains

Asian currencies mostly up late on rupiah, yen gains

SINGAPORE (Dow Jones): The Japanese yen's vigor and the
Indonesian rupiah's rebound lifted most Asian currencies late
Monday, dealers said.

The market's relief over the smooth inauguration of
Indonesia's new cabinet during the weekend was, however, tinged
with caution, preventing the Indonesian currency from
strengthening beyond Rp 8,200 to the dollar.

Investors remain nervous over President Abdurrahman Wahid's
political fate. Indeed, the rupiah lost some ground late in the
day after the country's parliamentarians - already critical of
Wahid's new cabinet - agreed Monday to launch probes into two
loan scandals linked to the embattled president.

In North Asia, dollar-selling by exporters and the yen's
strength bolstered the South Korean won. The New Taiwan dollar
bucked the region's strength, as the local stock market took a
tumble.

The rupiah set the firmer undertone in the Southeast currency
markets, although activity was subdued in late trading, with the
closure of U.K. financial markets Monday for a national holiday.

Investors were heartened by Vice President Megawati
Sukarnoputri's presence at the swearing-in ceremony of Wahid's
new leaner cabinet Saturday, as it fueled hopes a tussle between
the two leaders over the government's direction has somewhat
eased.

Stop-loss selling and profit-taking in the U.S. currency
hammered the dollar to an intraday low of Rp 8,205, before
onshore corporate demand and offshore short-covering pushed it
higher to Rp 8,245 around 0830 GMT, dealers said.

UBS Warburg currency strategist Mansoor Mohi-uddin said if the
rupiah attempts another stab at the psychologically important Rp
8,000 level to the dollar, "it's probably overvalued because the
political risk is evident there." The dollar failed to make much
headway as it approached Rp 8,000 last week, especially after
Wahid's cabinet lineup disappointed investors.

Parliamentarians' decision to further investigate two alleged
scandals linked to Wahid, although expected, has renewed the
political anxieties.

One scandal, known as Bulogate, involves the disappearance of
$4 million from the state logistics agency, Bulog. Another
centers around a $2 million personal donation from Brunei's
Sultan Hasan Bolkiah to Wahid which lawmakers claimed the
president failed to fully disclose.

Other Southeast Asian currencies mirrored the movements of the
rupiah and the yen, dealers said.

The dollar fell to a nearly two-month low against the yen in
Asia Monday as overseas investors sold the dollar for yen on
renewed faith in the Japanese economy.

At 0845 GMT, the dollar was quoted at Y106.24, below Y106.95
late Friday in New York. The dollar was at Y106.96 late Friday in
Tokyo.

In the Thai currency market, the dollar slipped to 40.775 baht
from 40.875 baht late Friday.

Against the Singapore dollar, the U.S. currency was at
S$1.7181, after staying above the S$1.7200 psychological
resistance last Friday.

The Philippine peso strengthened marginally to 45.013 pesos to
the dollar, from 45.040 pesos last Friday.

Elsewhere, the South Korean won ended at its highest level in
more than five weeks, thanks to month-end dollar-selling by local
exporters, dealers said.

The dollar finished at 1,111.80 won, its lowest close since
July 20, when it ended at 1,111.60 won. The U.S. currency closed
Friday at 1,114.10 won.

The New Taiwan dollar ended unchanged after recovering from
its earlier losses, which were triggered by a sharp fall on the
local stock market. Intervention by the local central bank and
month-end demand for the local currency by importers helped
recoup the New Taiwan dollar's losses, dealers said.

The U.S. dollar ended at NT$31.072, unchanged from Friday's
finish.