Most Asian monies down late, rupiah the lone gainer
Most Asian monies down late, rupiah the lone gainer
Dow Jones, Singapore
Most Asian currencies weakened against the dollar Monday, except the Indonesian rupiah, which continued to enjoy support from the impending sale of the government's stake in the country's largest bank.
The dollar's rebound against the yen helped carry it marginally higher against the Singapore dollar, Thai baht, Philippine peso and South Korean won.
The Indonesian government is preparing to announce the winning bid for its 51 percent stake in PT Bank Central Asia as early as Tuesday, the country's vice president said.
The Indonesian Bank Restructuring Agency has narrowed the field down to bids from two consortiums, one led by U.K.-based Standard Chartered Bank Plc., and the other by U.S. investment firm Farallon Capital.
The impending sale of BCA has been positive for the rupiah in recent trading sessions both because of the capital inflows it will bring, and for the positive message it will send to investors regarding Indonesia's commitment to financial sector reform, analysts say.
Vice President Hamzah Haz said the government will not give in to demands from BCA workers who fear they will lose their jobs following the sale.
"The transaction won't be canceled as it's already included in the letter of intent (sent to the International Monetary Fund) and the IMF has approved it," Hamzah said.
About 6,000 BCA workers protested in downtown Jakarta Monday and threatened to launch a five-day strike to derail plans to sell the bank.
Late in Asian trading the dollar was quoted at Rp 9,960, down from Rp 10,135 late Friday.
However, market players were looking for signs that corruption allegations against Indonesia's parliamentary speaker could erode the pro-rupiah sentiment.
Prosecutors last week questioned Akbar Tandjung regarding claims that he used state funds to finance his party's election campaign. Tandjung heads Golkar, Indonesia's second largest political party.
Other Asian currencies came under pressure as market players covered their short-dollar positions in the wake of the U.S. currency's rebound against the yen.
The dollar perked up after falling to a three-month low against the yen last Thursday.
Most Asian currencies track movements in the yen to varying degrees due to economic ties and export competitiveness with Japan.
Near the end of Asian trading the dollar was quoted at 129.11 yen, up from 128.59 yen late Friday in New York and 127.64 yen late Friday in Tokyo.
The won was the biggest casualty of the weaker yen, although its declines were tempered somewhat by exporters' selling dollars.
The dollar ended at 1,317.0 won compared with Friday's close of 1,314.3 won.
The New Taiwan dollar was marginally weaker after closing at a two-month closing high in the previous session.
The U.S. dollar ended at NT$34.949, up from Friday's close of NT$34.947. The trading range was NT$34.960 to NT$34.915.
A recent surge of foreign inflows into the local stock market helped offset the pressured on the New Taiwan dollar, dealers said.
Foreigners last week bought a net US$1.15 billion worth of Taiwan stocks, according to Banc of America Securities.
Late in Asian trading the U.S. dollar was quoted at S$1.8227, up from S$1.8208 late Friday.
The dollar closed at 50.990 pesos on the Philippine Dealing System, up from 50.970 pesos Friday.
Against the baht the dollar was quoted at 43.340 bath, up from 43.250 bath late Friday.