Most Asian monies up as rupiah gains ground

Most Asian monies up as rupiah gains ground

SINGAPORE (Dow Jones): Asian currencies edged up in late Asian
trading on Friday, although a number of markets were closed for a
lunar New Year holiday.

Regional currencies were buoyed by the rupiah, which rose as
fears of a military coup arising from a standoff between
Indonesian President Abdurrahman Wahid and powerful Security
Minister Gen. Wiranto receded.

A rise in the local overnight interest rate after authorities
decided on Thursday to tighten the money supply also helped the
currency.

There is a growing belief in financial markets that Wiranto
will resign from the Cabinet without fuss when Wahid returns to
the country on Feb. 13.

Traders took heart from comments by Indonesian Defense
Minister Juwono Sudarsono, which appeared to indicate Wahid is
softening his line on Wiranto and will negotiate a graceful exit
for the former military chief.

Sudarsono said he passed on to Wiranto a request from Wahid
for him to step down immediately, but indicated nothing may
happen until the president returns.

The dollar is at Rp 7,520, down from Rp 7,660 late Thursday
and a four-month high of Rp 7,700 earlier that day.

The Singapore dollar rose sharply on the back of the stronger
rupiah, a rise in local stock prices, and ongoing fears of
intervention by the Monetary Authority of Singapore, which sold
U.S. dollars earlier this week.

The Straits Times Index rose 9.6 points, or 0.4 percent, to
2,258.9.

Late in the day, the U.S. dollar was at S$1.6870, down from
S$1.6955 previously.

Elsewhere, the baht rose strongly against the U.S. dollar in
line with the stronger Indonesian currency and a higher yen.

Analysts say the baht may rise further on the back of more
corporate restructuring and foreign investment, both of which
helped lift Thailand out of a severe recession.

Citigroup and IDEAglobal.com economists expect the baht to
breach 36.000 against the dollar by the end of the year.

"The capital account should support the baht. We expect
capital inflows," said Citigroup economist Anusorn Tamajai.

Still, Anusorn warns the currency may come under pressure
during that period, especially "when the government and
corporates pay external debts."

Last September, the dollar rose above 40 baht amid a round of
corporate foreign-debt repayment.

In late trade, the dollar is at 37.500 baht down from 37.680
baht late Thursday.

The peso also ended the week higher at 40.535 pesos to the
dollar from 40.680 pesos a day earlier.

The South Korean won and New Taiwan dollar markets were closed
due to holidays in South Korea and Taiwan. The U.S. dollar ended
Thursday at 1,129.9 won and NT$30.775.