Asian monies mostly down, rupiah shines
Asian monies mostly down, rupiah shines
Netty Ismail, Dow Jones, Singapore
The wobbly yen bruised Asian currencies late Monday, except
for the Indonesian rupiah, which continued to outshine its
regional peers, dealers said.
Returning capital inflows and optimism surrounding Indonesia's
meeting with the Paris Club of official creditors next month
helped propel the rupiah to a new five-month peak against the
dollar, observers said.
"The Indonesian rupiah, the second-best performing currency
this year, remains the favorite high-yield play ahead of next
month's meeting with Paris Club creditors, which is likely to
proceed smoothly," DBS Bank said.
Demand for the currency by corporations needing to make tax
payments at the end of their fiscal year, as well as continued
dollar sales by the Indonesian Bank Restructuring Agency, added
to the currency's upward momentum, Jakarta dealers said.
The first payment expected Thursday by U.S. investment fund
Farallon Capital for its acquisition of the Indonesian
government's 51 percent stake in Bank Central Asia - the
country's largest retail bank - kept sentiment buoyant, dealers
said.
"With the BCA sale proceeds suspected to be already flowing
through the market, the sentiment on the rupiah remains bullish,"
Bank of America said in a report.
The recent BCA sale has fueled hopes of further asset sales,
including the government's 51 percent stake in the publicly
listed PT Bank Niaga.
After briefly testing the Rp 9,700 psychological level, the
rupiah was quoted at Rp 9,720 to the dollar at 0900 GMT (4.00 pm
Jakarta time), some 1.3 percent stronger compared with Rp 9,835
late Friday.
A convincing break past Rp 9,700 could pave the way for
further gains by the rupiah to Rp 9,500, said a dealer at a U.S.
bank in Jakarta.
As seasonal Japanese fund repatriation flows ebb, the yen's
slide past 133 yen to the dollar Monday and expectations the
currency would retreat to 135 yen in the new Japanese fiscal year
starting April 1, cast a shadow on the rest of the region's
currencies, dealers said.
Traditional repatriation flows into Japan, aimed at flattering
the balance sheets of domestic companies ahead of the fiscal
year-end, have recently provided some reprieve for the yen, and
in turn most other Asian currencies.
The Singapore dollar felt the brunt of the yen's weakness,
sinking past S$1.8350 against the U.S. currency - where stop-loss
U.S.-dollar purchases were triggered - after finally piercing
S$1.8300 in London Friday, dealers said.
Late Monday, the Singapore dollar was quoted at S$1.8367,
weaker compared with S$1.8289 in Asia late Friday.
The dollar was quoted at 133.11 yen, higher than 132.82 yen in
New York late Friday. The dollar was at 132.26 yen in Tokyo late
Friday.
The New Taiwan dollar finished slightly weaker at NT$35.046
against its U.S. counterpart, compared with NT$35.036 Friday.
Month-end exporter sales of the U.S. currency checked the
downward pressure on the New Taiwan dollar, freeing Taiwan's
central bank from the need to intervene, dealers said.
The Thai currency slipped to 43.405 baht to the dollar from
43.360 bath late Friday.
On the Philippine Dealing System, the dollar closed at 51.120
pesos, higher than 51.095 pesos Friday.
Foreign exchange participants were indifferent to news that
the Philippines is in talks with South Korea and China on
establishing bilateral currency swap arrangements to bolster its
dollar buffer against future financial market shocks.
A senior monetary official in May said the pact with South
Korea should be completed by the end of May.
The swap arrangements are part of a broader effort by some
Southeast Asian nations to forge similar pacts with the region's
strongest economies: Japan, South Korea and China.