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.