Rupiah closes flat as other Asian currencies mostly higher
Rupiah closes flat as other Asian currencies mostly higher
SINGAPORE (Dow Jones): The rupiah closed flat Friday for the
third straight day in quiet pre-weekend trade, with state bank
buying bringing the local unit down from intraday highs.
The dollar closed at Rp 8,895 in Asia, unchanged from its
close in Asia Thursday.
The U.S. unit dropped to an intraday low of Rp 8,820 in the
morning in line with its moves against other regional currencies.
But state banks bought the dollar, bringing it quickly off
these lows. The dollar faces stiff resistance in the afternoon
around Rp 9,000.
Trade was muted Friday, as many of the country's senior
politicians are abroad for state visits.
Political instability, including fears of a growing move to
topple President Abdurrahman Wahid's one-year-old government, is
a major reason why the rupiah is currently trading down 20
percent from its level at the start of the year.
A parliamentary probe into Wahid's role in several financial
scandals is continuing weigh on sentiment.
However, most traders agree the parliament is too divided to
use the scandals as a springboard for the impeachment of the
president.
Meanwhile, most Asian currencies rallied Friday, with the
South Korean won and New Taiwan dollar posting the biggest
increases the strength of sharp stock market gains.
Even the woeful Philippine peso saw its fortunes improve,
rebounding from a record low a day earlier as investors waited to
see what further action the central bank would take to support
the currency.
The Thai baht was both marginally lower in thin trade.
The leading stock indexes in Seoul and Taipei each rose more
than 6 percent Friday, fueled by a surge in the Nasdaq Composite
index and U.S. semiconductor shares Thursday.
The quest for Korean stocks helped the won recover some of the
losses it suffered Thursday when the currency touched a five-
month low against the dollar. At Friday's close, the dollar was
quoted at 1,128.5 won, down from 1,137.7 won Thursday.
The Weighted Price Index of the Taiwan Stock Exchange soared
6.4 percent, nearly recovering all of the losses it sustained in
a massive selloff a day earlier.
The New Taiwan dollar responded, gaining against its U.S.
counterpart for the second day in a row. The U.S. dollar closed
NT$32.143, down from NT$32.325 the previous day.
The Philippine peso enjoyed a respite from the recent selloff
sparked by political and economic turmoil sweeping the country.
The dollar closed at 48.740 pesos on the Philippine Dealing
System, down from a record low of 48.775 pesos at the previous
close.
Investor sentiment toward the peso has been seriously damaged
in recent days as a result of poor sentiment, a campaign to
impeach President Joseph Estrada, a ballooning budget deficit,
falling stock prices, and a delay in funding from the
International Monetary Fund.
Further, Standard & Poor's Corp. Thursday downgraded its
outlook on the Philippine's long-term sovereign credit ratings to
negative from stable due to concerns over the country's growing
political crisis.
Recent weakness in the baht continued, with the local currency
losing ground because of onshore corporate demand for U.S.
dollars, dealers said.
Near the end of trading, the dollar was quoted at 43.555 baht,
up from 43.485 baht late Thursday.
Investor sentiment has been running against the baht due to
uncertainty over the outcome of a general election expected by
year-end.
Gains in the Singapore dollar were inspired by rising stock
prices and the peso rebound, dealers said.
In late Asian trading the U.S. dollar was quoted at S$1.7505,
down from S$1.7538 late Thursday.