Asian monies mostly down, Rp peso at 2-month low
Asian monies mostly down, Rp peso at 2-month low
Ditas Lopez, Dow Jones, Manila
The Philippine peso ended at a two-month low on continued
security and political concerns on Friday, while other Asian
currencies were also mostly weaker against the dollar.
Short-dollar covering following a recent sell-off, and
importer demand drove dealings across the region, but trading was
muted by holidays in Asia, including Singapore and Malaysia.
The dollar ended at 55.330 peso, its highest level since
closing at 55.450 peso on Aug. 26, and was up from 55.240 peso on
Thursday. Volume declined to US$145.2 million from $236.5 million
on Thursday.
Central bank deputy governor Amando Tetangco said the dollar's
recent rally is partly due to corporate demand, particularly from
firms covering their month-end debt payments and import
requirements.
"The political noise isn't helping. It has been a cautious
market," said Tetangco, who noted that banks were also buying
dollars ahead of the May 2004 presidential elections. There are
concerns of political and security instability in the months
leading to the polls.
There have been renewed security concerns following reports
that 30 members of the terror Jemaah Islamiyah group remain in
the country.
Senior Philippine officials have been trying to calm the
markets, and central bank governor Rafael Buenaventura added his
voice on Friday, saying the peso should recover from its recent
weakness toward the year end when remittances from overseas
Filipino workers during Christmas should help support the local
currency.
Indonesia's central bank also said on Friday it won't
intervene to support the rupiah, which has weakened due mainly to
dollar demand from corporates for month-end debt repayments.
The dollar ended at Rp 8,490, higher than Rp 8,475 on
Thursday.
Apart from growing demand from local corporates, recent losses
in the local equity market also pressured the rupiah.
"Some foreign investors sold shares and bought dollars," said
a Jakarta trader.
The Korean won, meanwhile, fell over the day with market
participants suspecting the government hand in the decline,
weakening the won to boost exports and support the flagging
economy.
The dollar climbed to 1,186.8 won before settling at 1,185.7
won, preferring to track the gains in non-deliverable forwards
and its advance against the yen.
The U.S. unit closed at 1,184.4 won on Thursday.
Elsewhere, the New Taiwan dollar was weaker on importers'
requirements, with interbank players mostly quiet, keeping trades
relatively light. The U.S. dollar closed at NT$34.020, up from
NT$33.975 a day earlier.
Bucking the regional trend was the Thai baht, which gained
some ground on Friday after a local holiday on Thursday. The
dollar was trading at 39.815 baht against Wednesday's close of
39.97 baht. Dollar demand from importers though limited the local
unit's gains.
The Bank of Thailand on Friday said that recent limits imposed
on outstanding balances of nonresident accounts with local
financial institutions to curb speculation in the foreign
exchange market had been effective.
The Singapore dollar also strengthened in offshore trading,
with onshore markets closed for a public holiday. The U.S. dollar
was quoted at S$1.7414 in late Asian trading, compared with
S$1.7418 a day earlier.