Peso up as Estrada loses support
Peso up as Estrada loses support
SINGAPORE (Dow Jones): The Philippine peso soared by more than
15 percent to its highest level in three months on Friday after
the chief of the country's military withdrew his support for
President Joseph Estrada, fueling investors' hopes that a change
of leadership is forthcoming.
Other Asian currencies were mostly stronger, bolstered by the
yen's firming after a Bank of Japan official expressed concern
about the currency's recent weakness.
The loss of the backing of armed forces chief of staff Angelo
Reyes was a major blow to Estrada, who has been struggling to
stay in power while fighting corruption charges in his Senate
impeachment trial.
Reyes said the embattled Estrada should resign "in the
interest of the Filipino people and the country" and clear the
way for vice president Gloria Arroyo to assume the presidency.
The dollar closed against the peso at 47.500 pesos, down from
54.790 pesos late Thursday. It was the lowest close for the
dollar since 47.485 pesos on Oct. 13.
The Indonesian rupiah gained some ground Friday in thin trade
as participants digested new rules aimed at curbing speculation
by cutting offshore supply.
The dollar finished the Asian day at Rp 9,445, up from Rp
9,590 at Thursday's close.
Bank Indonesia (Central Bank) Deputy Governor, Miranda Gultom
said on Friday that onshore banks couldn't move rupiah offshore
to foreign banks without underlying trade reasons, effectively
making it more difficult to speculate against the Indonesian
currency.
But opinions are divided on whether this will starve the spot
market of currency, despite bank officials insisting that it
wasn't restricting spot trading.
Foreign bank traders said they were hoping to further clarify
regulations Monday with Bank Indonesia.
"People are holding back amid the general confusion," said a
foreign bank treasurer.
He estimated that trading volumes were 60 percent to 70
percent off normal volumes, and said it was hard to gauge market
direction next week since much depended on clarification of the
new rules.
The South Korean won rose largely on the dollar's decline
against the yen in Asia, dealers said.
The dollar finished at 1,276.8 won, below Thursday's close of
1,284.0 won.
Against the yen, the dollar plunged as low as Y116.97 early in
the session after Bank of Japan Governor Masaru Hayami said the
yen's recent decline was overdone.
But later in the day Finance Minister Kiichi Miyazawa pushed
the dollar as high as Y117.93 when he reaffirmed that he is not
concerned about the yen's decline.
Late in Asian trading the dollar was quoted at Y117.96, down
from 118.07 late Thursday in New York and Y119.19 late Thursday
in Tokyo.
Continued inflows of foreign equity funds and the stronger yen
helped push the New Taiwan dollar to an eight-week high.
The U.S. dollar closed at NT$32.577, down from the previous
close of NT$32.616, and at its lowest close since NT$32.493 on
Nov. 21.
Continued inflows of foreign funds and a three-week stock
rally have pushed up the main stock index 23 percent.
The Thai baht benefited from the dollar's weakness in global
markets and the rebound in the peso.
The dollar finished at 43.065 baht, down from 43.28 baht at
the Asian close Thursday.
The Singapore dollar was virtually unchanged against the U.S.
dollar. Late in Asia the U.S. dollar was quoted at S$1.7377,
compared with S$1.7379 late Thursday.