Peso continues to stabilize, pressure mounts on rupiah
Peso continues to stabilize, pressure mounts on rupiah
SINGAPORE (Dow Jones): The Philippine peso continued to
stabilize Wednesday on hopes that President Joseph Estrada may be
forced from office, while mounting pressure against the
Indonesian rupiah pushed it to a fresh two-week low.
Most other Asian currencies ended mixed and range-bound in
thin trading conditions.
Investor optimism that impeachment proceedings against
Philippine President Joseph Estrada could result in his ouster
and bring an end to the country's political crisis were
supportive for the local currency.
Against the peso, the dollar closed at 49.800 pesos on the
Philippine Dealing System, down slightly from 49.830 at Tuesday's
close. It was the peso's strongest performance in more than a
week.
Estrada faces a trial on corruption charges in the Senate
after his impeachment Monday by the House of Representatives. But
it remains unclear whether Estrada's political opponents have
enough votes in the Senate for a conviction.
Estrada has denied charges he pocketed millions of dollars in
gambling payoffs and tobacco taxes.
While the euphoria surrounding Estrada's impeachment helped
slow the peso's recent slide, "the relative stability is unlikely
to last," DBS Bank said in a research report.
"It is a matter of time before the market realizes that
President Estrada's impeachment trial is not only likely to last
till late December, but also that the odds for a guilty verdict
has diminished," the bank said.
The Indonesian rupiah continued its downward slide that began
about three weeks ago.
Late in Asian trading the dollar was quoted at Rp 9,370, up
from Rp 9,343 late Tuesday.
A deteriorating political landscape in Indonesia and
continuing corporate demand for U.S. dollars to make year-end
debt payments pushed the rupiah to its lowest close since Oct.
30.
Like Estrada, Indonesian President Abdurrahman Wahid has been
asked by his critics to resign. Those critics have accused Wahid
of incompetence and corruption, and blame him for the fact that
Indonesia's economic growth trails that of other Asian countries.
Stronger-than-expected third-quarter economic growth reported
by the government Wednesday failed to lift the rupiah. The
country's gross domestic product, supported by strong exports,
grew by 5.12 percent on year, higher than the 4.80 percent growth
forecast by a panel of economists surveyed by Dow Jones
Newswires.
The New Taiwan dollar ended marginally lower as trading volume
shrank for the third straight session.
At the end of Asian trading, the U.S. dollar was quoted at
NT$32.176, compared with NT$32.168 late Tuesday.
The South Korean won rose on a modest rebound in Seoul stocks.
The dollar closed at 1,135.70 won, down from 1,136.30 won late
Tuesday.
The Singapore dollar weakened in a day of lackluster and
directionless trading.
Late in Asia the U.S. dollar was quoted at S$1.7438, up from
S$1.7426 late Tuesday.
The Thai baht edged higher after moving in a narrow range for
most of the day. Dealers said trade was muted with no fresh news
to provide a clear direction for the currency.
Against the baht, the dollar was quoted at 43.605 baht in late
Asian trading, down slightly from 43.620 baht late Tuesday.