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.