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.