Asian monies up, rupiah 3-month high
Asian monies up, rupiah 3-month high
Dow Jones, Singapore
Most Asian currencies were on a firmer footing Thursday,
riding on the coattails of the yen as the dollar surrendered its
early gains against the Japanese unit.
As in recent days, trading was sluggish and range-bound ahead
of the year-end holidays. Market players were also awaiting
several sets of important U.S. economic data due later in the
global session, as well as the Bank of Japan's quarterly Tankan
business survey Friday.
The Indonesian rupiah ended at a three-month high, while the
currencies of Singapore, Taiwan and the Philippines also
strengthened.
News of the U.S. Navy's interception of a shipment of North
Korean-made Scud missiles Wednesday made no discernible impact on
the markets.
In South Korea, the dollar finished just a tad lower at
1,212.0 won, from 1,212.5 won at the previous session close.
"The market reaction is to some extent neglect of what could
be very significant geopolitical risk in Asia, especially in
Northeast Asia," Bank of America said in a report. The market
inaction "simply provides an opportunity to go long," on the
dollar versus Asian currencies, the bank added.
A news report late Thursday which said North Korea would
immediately reactivate a nuclear program that it froze under a
1994 deal with the U.S. also went little noticed.
The report by South Korea's Yonhap news agency came soon after
the country's markets closed for the day.
Currency markets are also watching to see if John Snow, who
earlier this week was nominated as U.S. treasury secretary to
replace Paul O'Neill, will maintain the U.S.' strong dollar
stance.
In Indonesia, the dollar ended at a fresh three-month low of
Rp 8,870, down from Rp 8,890 Wednesday, as the local currency was
buoyed by the government's commitment to sell a stake in a local
telephone company by year-end.
Dealers said the International Monetary Fund's approval of a
US$365 million loan to Indonesia Monday also supported the
rupiah.
Lack of dollar demand from local companies is expected to pave
the way for the dollar's further slide toward Rp 8,800 Friday,
dealers said.
"Most of our clients are still keen to sell the dollar," a
dealer at a large U.S. bank in Jakarta said.
Earlier in the day, the government said it remains on schedule
to announce the winning bid for its 42 percent stake in
international call service provider Indonesian Satellite Corp.,
or Indosat, next Monday, when it receives final bids this Friday.
The government is expected to raise around $150 million from
the sale and the funds will be used to help finance the widening
state budget deficit.
Meanwhile, the New Taiwan dollar was boosted by stop-loss
selling in the U.S. dollar in the wake of its gains versus the
yen, as well as demand related to foreign buying of local shares.
The U.S. dollar closed at NT$34.838, down from NT$34.860 at
the previous session's close.
Elsewhere, the dollar ended at 53.33 peso on the Philippine
Dealing System, slightly down from 53.35 peso Wednesday.
The Singapore dollar strengthened in tandem with the yen and
most of its regional counterparts.
The U.S. dollar was quoted around S$1.7593, down from S$1.7640
late Wednesday.
Against the Thai baht, the dollar closed the Asian trading
session at 43.37 baht, little changed from 43.375 baht Wednesday.