Asian monies weighed by yen's flaws and political concerns
Asian monies weighed by yen's flaws and political concerns
SINGAPORE (Dow Jones): Most Asian currencies weakened against the U.S. dollar in subdued trading late Thursday, weighed by the yen's overnight weakness and nagging political concerns in Indonesia and the Philippines, dealers said.
The Indonesian rupiah slipped to Rp 11,190 per dollar from Rp 11,088 late Wednesday.
A team of seven Indonesian ministers next week is to present a political peace plan which they hope will prevent President Abdurrahman Wahid from being impeached, one of the ministers said Thursday.
Defense Minister Mohamad Mahfud said that the group was still working on several alternative solutions to end the country's political crisis.
They include a power-sharing arrangement between Wahid and his popular Vice President Megawati Sukarnoputri, as well as a Cabinet reshuffle and an early general election, he said.
The Singapore dollar continued to be out of step with the rest of its regional peers, rising in volatile trade on talk that the Monetary Authority of Singapore had stepped up its recent intervention, dealers said.
Dealers said that the de facto central bank was suspected to have sold U.S. dollars near S$1.8230 early Thursday, and continued to defend the Singapore dollar, via its agent banks, throughout the day, even when it fell to S$1.8175.
But keen demand for U.S. dollars prevented the pair from sliding further, dealers said. Strong dollar demand by Singapore companies seeking to fund their overseas acquisitions has been one of the key reasons behind the Singapore dollar's recent weakness.
The market is also using the Singapore dollar as a proxy, given the stricter foreign exchange trading restrictions in other Southeast Asian currencies. This makes the Singapore dollar more volatile than other currencies in the region, dealers said.
At 0930 GMT (4:30 p.m Jakarta time), the U.S. dollar was quoted at S$1.8191, down from S$1.8216 late Wednesday, after the MAS was suspected to have intervened.
The Thai baht regained its footing against the U.S. dollar late Thursday as it found reprieve from the Singapore dollar's rebound.
The U.S. dollar was at 45.485 baht, little changed from 45.490 baht late Wednesday.
Earlier in the day, the baht was languishing around 45.500 baht to 45.600 baht on the overnight losses in the yen and Singapore dollar, dealers said.
The South Korean won and New Taiwan dollar tracked the yen's decline, although foreign equity fund inflows into Taipei cushioned the New Taiwan dollar's fall, dealers said.
Against the New Taiwan dollar, the U.S. currency ended at NT$32.884, up marginally from NT$32.879 Wednesday.
In Seoul, the U.S. dollar finished at 1,305.9 won, up from Wednesday's close of 1,301.8 won.
The yen weakened as the euphoria over the election of reform- minded Junichiro Koizumi as Japan's prime minister wore off.
At 1000 GMT (5 p.m. Jakarta time), the dollar was quoted at Y122.31, above Y122.15 in New York late Wednesday. The dollar was at Y121.57 in Tokyo late Wednesday.
Elsewhere, dollar remittances from Filippinos working overseas helped boost the Philippine peso, although the gains were curbed by fears of violence in the runup to Monday's local and congressional elections, dealers said.
The dollar closed at 50.590 pesos on the Philippine Dealing System, down from 50.650 pesos Wednesday.