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.