Asian monies mixed in Lunar New Year trade
Asian monies mixed in Lunar New Year trade
SINGAPORE (Dow Jones): Asian currencies were mixed in late
Asian trading Monday after a subdued and illiquid session due to
the Lunar New Year holiday, which closed the key regional
financial centers of Hong Kong and Singapore.
The Indonesian rupiah rose slightly as financial markets
responded favorably to news late Friday that the International
Monetary Fund approved a $5 billion loan to help Indonesia carry
out its economic reform program.
Indonesian stock prices gained, with the Jakarta Composite
index up 4.5 points, or 0.7 percent, in late afternoon trade at
639.5 points.
Also helping the rupiah was an effort by President Abdurrahman
Wahid to ease tensions between himself and out-of-favor Security
Minister General Wiranto.
Wahid has demanded that Wiranto resign from Cabinet after a
government report implicated him and other officers in atrocities
committed last year in East Timor. So far, Wiranto has refused to
leave, but most analysts expect he will resign quietly when Wahid
returns to the country Feb. 13 in return for immunity from any
prosecution arising from the report on East Timor.
Indeed, Wahid appeared to pave the way for such a departure,
when he heaped praise on the general in a weekend speech to
Indonesians living in Rome.
Wahid said Wiranto saved his life in the mid-1990s by tipping
him off about a military plan to kill him and Megawati
Sukarnoputri, now vice president.
In late trade, the dollar was at Rp 7,495, down from Rp 7,520
late Friday.
Trade in the South Korean won resumed Monday amid talk the
Bank of Korea, South Korea's central bank, may soon raise short-
term interest rates to control the nation's rapid economic
recovery.
A local newspaper, the Munhwa Ilbo, said the timing and size
of the hike would be discussed at a central bank policy meeting
Thursday.
However, many market participants dismissed the report, saying
with Daewoo bond redemptions proceeding smoothly, the chances of
a short-term rate hike appear less likely than before.
South Korea's one-day call rate, its benchmark short-term
interest rate, is unchanged at around 4.7% since last April as
the bank retained its low interest rate policy to boost the
economy.
Also helping the won was buying of local shares by foreign
investors. They purchased net 84.8 billion won worth of shares on
the Korea Stock Exchange.
The dollar late Monday was at 1,129.2 won from 1,129.9 won
last Thursday. Korean markets were closed Friday for the Lunar
New Year holiday.
The Singapore dollar interbank market was closed Monday,
although some banks in the region were quoting prices on demand
for their customers. The U.S. currency was at S$1.6905 compared
to S$1.6870 previously.
Late in the day, the Thai baht was slightly weaker against the
dollar, but dealers reported little trading interest with
Singapore and Hong Kong closed.
The dollar was at 37.550 baht, up from 37.500 baht late
Friday.
Elsewhere, the Philippine peso was a touch weaker on demand
for U.S. dollars by local corporates, particularly importers and
those looking to make foreign debt repayments. The dollar was at
40.545 pesos in late trade, up slightly from 40.535 previously.
The New Taiwan dollar market remains closed for the Lunar New
Year holiday in Taiwan. The U.S. dollar ended last Thursday at
NT$30.775.