Most Asian currencies fall as firms sell rupiah
Most Asian currencies fall as firms sell rupiah
HONG KONG (Dow Jones): Some strong economic numbers and waning
near-term political fears helped the Indonesian rupiah off its
worst levels of the day, but it still lost ground Wednesday.
The Singapore dollar also weakened a touch against the U.S.
currency, as did most of the other regional Asian currencies. But
dealers say the markets are rangebound and likely to remain so
ahead of key testimony from the U.S. Federal Reserve Chairman
Thursday.
"The Indonesian economy looks to be stabilizing," said Thio
Chin Loo, strategist at BNP-Paribas Group in Singapore.
Indonesian gross domestic product expanded 5.8 percent in the
fourth quarter, and 0.2 percent in all of 1999, beating forecasts
of a small contraction in the year and suggesting the economy has
bottomed out.
The U.S. dollar is quoted at Rp 7,375, up from Rp 7,285 late
Tuesday.
A dealer with a U.S. bank in Singapore said there's "a large
corporate player that needs to buy U.S. dollars."
He said the market could still test the Rp 7,500 level, but
favored a near-term move back toward Rp 7,280.00.
Bank of America analysts say the U.S. dollar demand against
the rupiah "comes from corporates with debts to repay - there is
local talk that repayments due in March-April amount to several
hundred million U.S. dollars."
Traders say they'll keep an eye on politics despite a peaceful
outcome in the ouster of General Wiranto from the governing
cabinet of President Wahid.
The Singapore dollar also gave ground Wednesday, with the U.S.
dollar quoted at S$1.7008, right around the day's high, and up
from S$1.6938 late Tuesday.
Patrick Bennett, director of currency strategy with Warburg
Dillon Read, said there's just no appetite for the Singapore
dollar and the other regional currencies at the moment. Federal
Reserve Chairman Alan Greenspan, will be giving his semi-annual
Humphrey-Hawkins Testimony Thursday and the markets are hoping
for some stability in global asset markets, he said.
Against the Philippine peso, the U.S. dollar is trading at
40.49 pesos, compared with 40.355 pesos late in the previous
session, pulled down in part by a fall in central bank gross
international reserves in January and a weaker Thai baht.
The U.S. dollar is quoted at 37.58 baht, compared with 37.495
baht previously.
In Korea, meanwhile, the absence of government support for
U.S. dollars saw it fall to a low of 1,123.35 won, from 1,127.00
won Tuesday. An opening bid set the day's high at 1,130 won.
The U.S. dollar is trading at NT$30.65, compared with NT$30.67
late Tuesday.