Asian monies mixed in late trade
Asian monies mixed in late trade
SINGAPORE (Dow Jones): Asian currencies were mixed late
Tuesday, with the South Korean won slumping to a one-year low
under domestic and international pressures, although the threat
of government action to stabilize the currency kept a rein on its
decline, dealers said.
The Indonesian rupiah edged lower at the close in Asia on
Tuesday as the market began to realize it will take some time for
the government to appoint a new team to run the central bank.
House of Representatives Speaker Akbar Tandjung said on
Tuesday there was no deadline for the lower house to amend laws
governing Bank Indonesia to make it easier for the government to
change the central bank's management.
After last week's resignation of acting Governor Anwar
Nasution and four other governors, investors are worried that the
central bank could lose its policy focus while politicians
wrangle over who should head the bank.
The dollar closed at Rp 9,455 in Asia, slightly higher than Rp
9,450 at Monday's close, but off the day's high of Rp 9,475.
Current governor, Sjahril Sabirin, remains in detention amid
allegations he was involved last year in a bank lending scandal.
But the Parliament can't remove of him under current laws,
which stipulate a governor has to commit a criminal act before
dismissal.
Still, the rupiah recovered from its day's lows amid a round
of profit-taking from offshore investors.
The New Taiwan dollar slid to a 17-month low as it disregarded
a strong rebound on the local bourse, which was propelled by
government-fund-buying and the government's stock-boosting
measures.
The dollar finished at 1,167.50 won, its highest close since
Nov. 23, 1999, when it ended at 1,170 won. The dollar closed
Monday at 1,154 won.
Sharing some of South Korea's woes, the New Taiwan dollar hit
a fresh 17-month low on the local bourse's volatility, high oil
prices, the yen's weakness and slumping semiconductor prices,
dealers said.
Central bank intervention, which accounted for about half of
the day's total trading volume of US$834 million, limited the New
Taiwan dollar's losses, dealers said.
The U.S. dollar ended at NT$32.493, up from Monday's close of
NT$32.442 late Monday, the highest finish since mid-June 1999.
Elsewhere, continued remittance inflows from overseas Filipino
workers bolstered the Philippine peso, dealers said.
Sentiment for the peso has also improved since the House of
Representatives set in motion last week the impeachment process
against President Joseph Estrada, who faces several charges
including graft and corruption.
But analysts warned against turning optimistic on the peso too
soon.
"There is a potential of a long-drawn out Senate trial which
would spell uncertainty for the market," said Vasan Shridharan,
treasury economist at Standard Chartered Bank.
The dollar closed at 49.490 pesos on the Philippine Dealing
System, down from Monday's close of 49.815 pesos.
Tight offshore liquidity due to demand for baht in offshore
swap markets provided some respite for the Thai currency. The
currency touched a fresh 32-month low of 44.425 baht against the
dollar in early trading, amid uncertainties ahead of Thailand's
general election early next year and high oil prices, dealers
said.
Around 0945 GMT, the dollar was at 44.175 baht, down from
44.340 baht late Monday.
The Singapore dollar recovered to S$1.7543 against the U.S.
currency from S$1.7550 late Monday on profit-taking in the U.S.
dollar, largely by U.S. funds, dealers said.