Rupiah closes higher as most regional currencies gain
Rupiah closes higher as most regional currencies gain
SINGAPORE (Dow Jones): The Indonesian rupiah closed higher after sluggish trading Monday, boosted by the rise of most other regional currencies, dealers said.
The dollar closed at Rp 8,875, down from Rp 8,922 late Friday in Asia.
Dealers said offshore participants unwound their dollar positions, but dollar bids from state banks prevented the unit from falling sharply.
Expectations that international lenders from the Consultative Group on Indonesia will approve Indonesia's request for $4.8 billion in loans also helped the local unit, dealers added.
The group meets Tuesday and Wednesday in Tokyo.
Still, dealers said approval of the loan won't likely boost the rupiah.
"I don't expect people to rush buying the rupiah if CGI gives the money to Indonesia," said a dealer with a foreign bank. "But, I do expect they will rush for the dollar if CGI won't give it." Dealers expect the dollar to trade between Rp 8,825 and Rp 8,910 Tuesday.
The peso slumped for the sixth straight session as President Joseph Estrada braced for possible impeachment proceedings amid allegations he received millions of dollars in gambling kickbacks.
Elsewhere, the Singapore dollar, Thai baht avoided the peso downdraft and posted marginal gains. In North Asia, the South Korean won strengthened, while falling stock prices pushed the New Taiwan dollar to a 14-month low.
Against the peso, the dollar soared to an intraday high of 49.000 pesos in early trading before the central bank intervened to support the local currency. The dollar gave up some of its gains, but still managed to close at a new record high of 48.670 pesos, up from 48.500 pesos late Friday.
Estrada, who has denied receiving "even a cent" from illegal gambling, Monday challenged his political opponents to "go ahead with their impeachment."
The House of Representatives must investigate any impeachment charges against Estrada. If it finds the charges substantial, it sends them to the Senate, which conducts a trial and decides a verdict.
The Thai baht was helped by improving sentiment for regional currencies and forecasts that third quarter earnings at Thai banks will be the best since the Asian financial crisis, traders said.
Near the end of Asian trading, the dollar was quoted at 43.195 baht, down from 43.575 baht late Friday.
The New Taiwan dollar tumbled to 14-month low against the U.S. dollar as share prices on the Taipei exchange fell to a 20-month low in late trading.
The U.S. dollar closed at NT$31.990, up from the previous close of NT$31.920.
The Weighted Price Index of the Taiwan Stock Exchange fell 4.2 percent as investors took profit on the bourse's early gains and offloaded tech shares.
The Singapore dollar was buoyed by the strength in other regional currencies and by improved sentiment following the Nasdaq's Friday rebound.
Market players also remained wary of testing the resolve of the Monetary Authority of Singapore, which is suspected of intervening to support the local currency at 1.7545 late Friday.
The South Korean won tracked the Seoul stock market higher.
The dollar finished at 1,127.40 won, down from Friday's close of 1,128.60 won.