Asian monies mostly up, rupiah down on importer dollar buying
Asian monies mostly up, rupiah down on importer dollar buying
SINGAPORE (Dow Jones): Most Asian currencies firmed against the dollar Friday, although analysts said the movement was just a temporary blip in the U.S. currency's upward trend.
Falling oil prices and domestic monetary announcements lent general support to most regional currencies for the second consecutive day.
The Thai baht enjoyed a respite from its recent weakness, gaining on profit-taking by exporters and on capital inflows. The Philippine peso, South Korean won, and New Taiwan dollar also strengthened, while the Indonesian rupiah edged lower. The Singapore dollar finished little changed.
The rupiah closed lower on local importer dollar demand for the dollar, traders said.
An unfounded rumor that former President Suharto had died also helped keep the dollar a touch on the strong side, they added. Suharto's lawyer Juan Felix Tampubolon dismissed the rumor.
The dollar closed at Rp 8,805, up from Rp 8,790 late Thursday.
Local importers bought dollars in Friday morning after it fell a little Thursday.
The rumor about Suharto added to pressure to buy dollars, as the market feared more street battles between pro- and anti- Suharto groups.
Later Friday, Muslim groups attacked nightspots in the center of the town, underscoring the precarious security situation in the capital.
The rupiah was unaffected in very slow pre-weekend trade. Afternoon trade Friday is normally sluggish as many market participants go to weekly prayers at the mosque.
Most analysts see the pair in a tight Rp 8,750 to Rp 8,850 next week. Trade is likely to remain range-bound while investors wait to see the outcome of a meeting of Indonesian aid donors in Tokyo Oct. 17-18.
Donors, including the World Bank and the U.S., have said further aid to Indonesia will depend on efforts to stop further violence in West Timor, where three U.N. workers were killed last month.
Late in Asia, the dollar was quoted at 42.325 baht, down from 42.495 baht late Thursday.
The Thai currency got a lift from exporters selling dollars after the U.S. currency's recent gains against the baht. Capital inflows associated with an upcoming public listing by utility company Ratchaburi Electricity Generating Holding also supported the local currency.
The dollar closed at 46.395 pesos on the Philippine Dealing System, down from 46.420 pesos a day earlier.
The peso continued to benefit from the Philippine Central Bank's announcement Thursday that it will raise bank reserve requirements as well as reintroduce a program that would allow companies to lock in future dollars at current exchange rates.
The New Taiwan dollar overcame negative sentiment to finish higher on a 5.4 percent rally in local stocks.
The U.S. dollar closed at NT$31.296, down from NT$31.320 late Thursday.
The South Korean won was driven higher on dollar-selling in the non-deliverable forward market, dealers said.
The dollar finished at 1,116.20 won, down from Thursday's close of 1,118.50 won.
The Singapore dollar opened the session stronger in tandem with the rising Thai baht, hitting an intraday high of 1.7463 per dollar in the first hour of trading. But the currency lost ground later as market players stocked up on U.S. dollars ahead of Monday's Columbus Day holiday.
Near the end of trading, the U.S. dollar was quoted at S$1.7475, little changed from S$1.7472 late Thursday.