Most Asian currencies rise, rupiah falls to 6-month low
Most Asian currencies rise, rupiah falls to 6-month low
SINGAPORE (Dow Jones): Asian currencies were higher late
Thursday with the exception of the Indonesian rupiah, which fell
to a 6-month low against the dollar as foreign investors
continued to dump Indonesian stocks.
Indonesia's benchmark Jakarta Stock Exchange Composite Index
late in the day was down 0.9 percent, or 3.7 points, at 521.6,
having lost 7.7 percent over the past five sessions, while the
dollar was quoted at Rp 8,005, up from Rp 7,780 a day earlier.
Traders say the rupiah continues to react to a downgrade
earlier this week by Standard & Poor's Corp. of Indonesia's long-
term foreign currency issuer credit rating to SD, or selective
default, from CCC+.
While the move was expected after the Paris Club of creditors
agreed to reschedule $5.8 billion in sovereign debt, the timing
was unfortunate as it coincided with rumors of an alliance to
oppose President Abdurahman Wahid, and tremendous volatility in
global financial markets.
This spooked investors, causing them to switch out of rupiah
into Singapore dollars for its apparent "safe haven" status.
Traders say the sharp fall in the rupiah, which was caused by
the purchase of just $10 million by a U.S. investment house, was
exacerbated by a lack of liquidity ahead of holidays in many
regional markets Friday, including the key trading centers for
the currency of Hong Kong, Indonesia and Singapore.
The institution has bought dollars over the past three days.
Dollar purchases later in the day by Indonesian companies -
believed to be in amounts of $3 million to $4 million at a time -
for foreign debt repayments added to downward pressure on the
rupiah.
In neighboring Singapore, the local currency benefited from
weakness in the rupiah. The U.S. dollar late in the day was at
S$1.6965, down from S$1.6970 a day earlier, and well below an
intraday high of S$1.7000.
The local dollar was also helped by news that non-oil domestic
exports rose 17.1% in March from a year earlier to a record
S$9.76 billion, suggesting continued strong growth for
Singapore's heavily trade-dependent economy.
The data exceeded market expectations. Economists surveyed by
Dow Jones Newswires expected, on average, exports rose 16% in
March after a rise of 18.8% on year in February.
In North Asia, the South Korean won ended slightly higher
against the dollar on dollar-sales by local exporters, although
trade was subdued.
The dollar ended at 1,108.5 won from 1,109.4 won late
Wednesday. Against the New Taiwan dollar, the U.S. unit ended at
NT$30.555 from NT$30.596 previously.
Elsewhere, the U.S. currency late was at 37.920 Thai baht,
down from 37.925 baht a day earlier.
Philippine markets were closed for a long holiday weekend. The
dollar ended Wednesday at 41.225 pesos.