Asian monies mixed, rupiah extends rally against dollar
Asian monies mixed, rupiah extends rally against dollar
SINGAPORE (Dow Jones): Asian currencies were mixed late
Tuesday, with the Indonesian rupiah's continued rally to a six-
month high against the U.S. dollar earlier in the day catching
many in the market off guard, dealers said.
But the lingering euphoria over the dramatic political events
in Indonesia failed to inspire the currencies of its Southeast
Asian neighbors, which continued to be dogged by recession
concerns and the added political uncertainty in Thailand, dealers
said. The Singapore dollar, the Thai baht and the Philippine peso
were all weaker against the U.S. dollar.
The Indonesian currency market continued to welcome the
peaceful transition of power to the more popular Megawati
Soekarnoputri, following the impeachment of former President
Abdurrahman Wahid last week.
Enhancing the market's optimism was Standard & Poor's decision
to revise its outlook on Indonesia's long-term sovereign credit
ratings to stable from negative, dealers said.
Stop-loss dollar sales, which were triggered when the U.S.
currency dropped below Rp 9,600, accelerated the dollar's slide,
hammering it to as low as Rp 9,375 in afternoon trade, dealers
said.
But with the market caught short on dollars, the U.S. currency
recouped the bulk of its losses to finish Tuesday's Asian day at
Rp 9,525, still significantly lower than Rp 9,700 late Monday.
Caution also prevailed as participants awaited details on the
new cabinet lineup, expected to be unveiled in the coming week,
dealers said.
Though some in the market are still keen to go long in the
rupiah, market watchers are doubtful if the recent rally will
last.
"It's pricing in a lot of the good news and it won't be
sustainable near term," said Thio Chin Loo, a regional currency
strategist at BNP Paribas.
The Japanese yen's consolidation, following the pounding it
suffered Monday, helped lift the Singapore dollar, the South
Korean won and the New Taiwan dollar off their morning lows,
dealers said.
After shooting up to as high as 125.37 yen in New York
overnight, the dollar eased to below 125.00 yen in Asia on
profit-taking, which set in after the Tokyo Stock Exchange's
benchmark stock index rebounded from Monday's 16-year lows.
At 1015 GMT (5.15 p.m. Jakarta time), the dollar was quoted at
124.87 yen, below 125.10 yen late Monday in New York.
Against the Singapore dollar, the U.S. currency resumed its
upward trend, following its sharp correction recently.
The U.S. dollar was at S$1.8026, higher than S$1.8012 late
Monday.
The South Korean won received additional support from a 1.5
percent rise on the local equity market and traditional month-end
dollar sales by local exporters, dealers said.
The dollar finished at 1,300 won, down from Monday's close of
1,303.5 won.
Pent-up demand for the New Taiwan dollar by exporters needing
to meet month-end payments bolstered the local currency, dealers
said. Taiwan's financial markets were closed Monday due to a
typhoon.
The U.S. dollar closed at NT$34.759 Tuesday, down from
NT$34.767 Friday.
On the Philippine Dealing System, the dollar rebounded, with
some banks rebuilding their positions unwound late Monday, as
fears of imminent foreign exchange restrictions to curb
speculation against the peso subsided, dealers said.
The dollar closed at 53.540 pesos, up from 53.370 pesos
Monday.
The Thai baht was marginally weaker in lackluster trade, with
participants clinging on to their long-dollar positions amid
uncertainty ahead of the Constitutional Court's long-awaited
verdict on Prime Minister Thaksin Shinawatra's assets concealment
case, dealers said.
The dollar was quoted at 45.715 baht, a touch higher than
45.700 baht late Monday.