Asian monies up late, rupiah near 6-month high
Asian monies up late, rupiah near 6-month high
Alan Yonan Yr, Dow Jones, Singapore
Asian currencies were stronger Monday with the rupiah continuing to hover near a six-month high as investors bet Indonesia's creditors will agree to lenient terms this week for the country's debt rescheduling.
The Singapore dollar, South Korean won and New Taiwan tracked a stronger yen, while financial markets in Thailand and the Philippines were closed for public holidays.
The rupiah strengthened to near a key level of Rp 9,500 per dollar early in the session amid optimism that the government will be given some breathing room on debt repayment and build on recent successes in its privatization plans.
Late in Asian trading the dollar was quoted at Rp 9,525 down from Rp 9,560 at Friday's close. It was the rupiah's best performance since last September.
An agreement by the Paris Club group of creditor nations to roll over an estimated $5.5 billion in Indonesian debt maturing between now and 2003 would also clear the way for the International Monetary Fund to press ahead with its Indonesian aid package. The creditors are slated to meet Thursday and Friday in the French capital.
For the first time, creditors are likely to allow Indonesia to delay repayment of interest on its debt, as well as principal. In two previous Paris Club reschedulings, creditors only agreed to push back principal payment deadlines.
"The debt rescheduling is key for Indonesia's projected 2.5 percent (of GDP) deficit target compared to 3.7 percent last year," Bank of Tokyo-Mitsubishi said in a research report.
Dealers said the rupiah garnered additional support from comments by visiting U.S. Trade Representative Robert Zoellick over the weekend expressing his support for President Megawati Sukarnoputri's efforts to reform the economy and help in the global fight against terrorism.
The won benefited from the yen's rise, despite heavy demand for dollars by foreigners who recently sold shares in the South Korean stock market.
The dollar ended at 1,328.2 won, down from Thursday's close of 1,330.5 won. Markets in Seoul were closed Friday for a public holiday.
The yen rose against the dollar Monday as uncertainty about how events in the Middle East would unfold prompted some players to sell the U.S. currency.
Near the end of Asian trading the dollar was at 131.27 yen, below 131.65 yen in New York late Friday.
Foreigners snapped up dollars against the won Monday after being net sellers of local shares for four straight sessions. On Monday, they unloaded 263.3 billion won in shares, pulling down the main stock index by 1.9 percent to 900.69.
The New Taiwan dollar strengthened against the U.S. dollar to its best finish in more than three weeks.
The U.S. dollar closed at NT$34.978, down from NT$34.999 Thursday. Dealings were valued at US$534 million, down from US$629 million Thursday. The market was closed for a public holiday Friday.
The local dollar's rise was slowed by the Taiwan central bank, which bought more than US$200 million in the session, mostly in the final minutes of trading. The central bank routinely intervenes to prevent excessive volatility in the New Taiwan dollar.
The Singapore dollar's rise was tempered by concerns that the central bank might be reluctant to allow it to appreciate to sharply, dealers said.
Late in Asia the U.S. dollar was quoted at S$1.8349, down from S$1.8358 late Friday.
News that Dutch electronics giant Philips Electronics will move its regional headquarters from Singapore to Hong Kong, caused worries over Singapore's competitiveness to resurface. That, in turn, prompted concerns among market players that the Monetary Authority of Singapore may intervene to keep the local dollar competitive against its regional peers.