Asian monies up, rupiah at week high
Asian monies up, rupiah at week high
Alan Yonan Jr., Dow Jones, Singapore
Most Asian currencies advanced against the dollar Thursday, with the Indonesian rupiah rallying on the strength of fresh capital flows into the country.
The South Korean won was the only laggard, coming under pressure from foreign flows out of the stock market and rising oil prices.
The rupiah posted its best performance in more than a week after Singapore Telecommunications announced it will pay US$429 million to increase its stake in Indonesia's biggest mobile phone company, PT Telekomunikasi Selular.
The SingTel announcement follows the acquisition last month of a 51 percent stake in Indonesia's Bank Central Asia by U.S. investment firm Farallon Capital Management.
Farallon is expected to complete its $530 million purchase of its stake in BCA with a payment of more than $200 million by April 15.
The Indonesian privatization effort is picking up momentum with the government hoping to raise between $750 million and $960 million this year from the sales of stakes in government- controlled banks and other companies.
"These capital flows are quite positive for Indonesia and the rupiah," said Nizam Idris, an analyst at the economic research firm IdeaGlobal.
Late in Asia the dollar was quoted at Rp 9,680, down from Rp 9,800 late Wednesday.
It was the rupiah's strongest close since March 27 when it finished trading at a six-month high of Rp 9,630 a dollar.
Idris said he expected the dollar to find support around Rp 9,650 in the near term because of uncertainties surrounding a meeting of Indonesia's creditors next week.
The so-called Paris Club group of creditors will consider a request to roll over $5.5 billion in Indonesian debt.
The Singapore dollar was supported by a better-than-expected report on March manufacturing activity and a stronger yen.
Near the end of Asian trading the U.S. dollar was quoted at S$1.8400, down from S$1.8438 late Wednesday.
The monthly Purchasing Manager's Index, which is viewed as a key leading indicator of activity in the manufacturing sector, rose to 52.4 percent in March, compared with 49.6 percent in February, exceeding analysts' forecasts of around 50 percent on average.
The dollar slipped against the yen after failing to push decisively above the 133 yen level. Late in Asia the dollar was quoted at 132.53 yen, below 132.72 yen late Wednesday in New York.
The Philippine peso was buoyed by the stronger yen and thin corporate demand for dollars. Sentiment toward the currency was also helped by an upward revision to the country's sovereign rating outlook to stable from negative by Standard & Poor's Corp.
The dollar closed at 51.140 peso on the Philippine Dealing System, down from 51.150 peso Wednesday.
The yen's advance against the dollar also underpinned the Thai baht.
Near the end of Asian trading the dollar was quoted at 43.600 bath, down from 43.705 bath late Wednesday.
However, Bank of America said the baht's gains will be limited in the near term given the negative impact that higher oil prices will have on the currency.
The New Taiwan dollar ended little changed as intervention by the central bank in support of the U.S. dollar offset the positive impact of the stronger yen.
The U.S. dollar closed at NT$34.999 compared with the previous close of NT$35.002.
In South Korea, the dollar closed at 1,330.5 won, up from 1,329.0 won Wednesday. Trade was tempered ahead of a long holiday weekend, with the dollar moving in a narrow 1,329.4 won to 1,331.0 won range.