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.