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.