Asian currencies up late, rupiah rises to 7-month high
Asian currencies up late, rupiah rises to 7-month high
Netty Ismail, Dow Jones, Singapore
Dazzling foreign exchange participants, the Indonesian rupiah vaulted to a seven-month high and broke key resistance levels after foreign governments agreed to reschedule part of the country's massive foreign debt.
Other Asian currencies were also stronger - albeit in familiar territory - as they found respite from a firmer yen, observers said.
The rupiah - which has been outperforming its regional peers in recent months - received a fresh impetus after the Paris Club official creditors agreed late Friday to reschedule Indonesia's US$5.4 billion debt due during the next 21 months.
The dollar collapsed below the psychologically important support level of Rp 9,500 Monday - which many had expected to hold - and subsequently fell through Rp 9,400 in late trading.
Foreign and local banks unloaded dollars, with state banks joining the selling spree after having recently bought the U.S. currency on behalf of their customers, including oil companies.
Gains in other Asian currencies were somewhat more restrained, given the yen's relatively modest rise and caution ahead of Federal Reserve Chairman Alan Greenspan's testimony before a joint Congressional committee Wednesday.
Investors are seeking clues as to when the central bank might start to raise interest rates, with such uncertainty clouding the near-term direction of the U.S. dollar, observers said.
The prolonged crisis in the Middle East has also kept the market on tenterhooks.
At 0910 GMT (4.10 p.m. Jakarta time), the dollar was quoted at 131.61 yen, below 131.95 yen in New York and 132.11 yen in Tokyo late Friday.
Finding additional support from foreign equity inflows, the South Korean won closed at 1,327.9 won against the dollar, stronger than 1,332.0 won Friday.
The won will likely strengthen to 1,300 won in coming months as the South Korean economy leads the region out of its economic malaise, said Simmonds at Salomon Smith Barney/Citibank.
The New Taiwan dollar closed at NT$34.992 against its U.S. counterpart, slightly firmer than NT$34.998 Friday.
Taiwan's central bank continued to intervene to check any excessive strength in the local currency, buying an estimated US$50 million Monday, dealers said.
The Singapore dollar was quoted at S$1.8361 against the U.S. currency, slightly stronger than S$1.8375 late Friday.
On the Philippine Dealing System, the dollar closed at 50.965 pesos, down from 51.020 pesos Friday.
The Thai currency was quoted at 43.505 baht to the dollar in sparse offshore trading, compared with 43.555 baht late Friday. The domestic baht market is closed Monday and Tuesday due to the Thai New Year holidays.