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.