Rupiah closes flat, other Asian currencies mostly up
Rupiah closes flat, other Asian currencies mostly up
HONG KONG (Dow Jones): The rupiah closed flat Thursday, as optimism from an agreement by donor nations to extend $4.8 billion in loans to Indonesia was tempered by local corporate demand for dollars, traders said.
The dollar closed at Rp 8,895 in Asia, unchanged from its close in Asia Wednesday.
The U.S. unit dropped to an intraday low of Rp 8,885 in the morning after the Consultative Group on Indonesia agreed in Tokyo Wednesday to supply Indonesia with $4.8 billion worth of soft loans for the 2001 budget deficit.
But local corporate demand for dollars around formed strong support for the U.S. unit. Dollar support is seen at Rp 8,850 Friday, with resistance at Rp 8,925.
Trade was muted Thursday, 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.
The Philippine peso and the South Korean won were weaker late Thursday, but most other Asian currencies edged up as regional foreign exchange markets enjoyed some respite from recent tumultuous dealings.
The Singapore dollar, Thai baht all ended higher as regional stock markets regained composure and various global political and economic troubles eased. Yet analysts say calmer trade is likely only a pause, and the regional outlook remains cloudy.
Even the New Taiwan dollar managed to rise in the session, despite another sharp drop in local stocks, and an apparent change in policy at the Central Bank of China tolerating greater weakness in the island's currency.
Late in the day, the U.S. dollar was quoted at NT$32.325, down from NT$32.38.
The Weighted Price Index of the Taiwan Stock Exchange fell to a fresh 54-month low Thursday to 5081.28, extending the previous session's 4.7 percent decline by a record one-day percent loss of 6.5 percent.
In South Korea, meanwhile, the won was weaker again, keeping it at lows not seen since May. Late in the day, the U.S. dollar was quoted at 1137.1 won, compared with 1136.7 won late Wednesday.
Korean stocks were slightly stronger on the day, with the Korea Composite Stock Price Index up 0.87 point to close at 515.04.
But the won suffered as overseas players bought U.S. dollars in the forward market.
Against the peso, the U.S. dollar was quoted at 48.758, up from 48.725 pesos and against the baht it was at 43.485, down from 43.685.
Analysts say the baht could be in for further losses in days ahead, in part because of the relatively liquidity of the currency and the difficulties in shorting other regional currencies backed by high interest rates.
The Singapore dollar was also stronger, meanwhile, with the U.S. unit at S$1.7543 late, down from S$1.7566. Patterson said the currency could be in for weakness ahead because the Monetary Authority of Singapore will be reluctant to intervene in its support in a period when investors are "risk averse".