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.