Rupiah higher, Asian monies mostly down late
Rupiah higher, Asian monies mostly down late
JAKARTA (Dow Jones): The Indonesian rupiah closed slightly
higher Thursday helped profit taking on the dollar following its
rise Wednesday and early Thursday.
The dollar closed at Rp 9,348 in Asia, down from Rp 9,365 late
Wednesday. The U.S. currency rose to an intraday high of Rp 9,408
rupiah.
Dealers added state banks - believed to act on the behalf of
Bank Indonesia - sold the dollar sporadically which resulted in
the dollar's slide.
"We will continue to take profit until the dollar is at Rp
9,300 and will buy the unit back at the level," said a dealer
with a foreign bank. "The dollar is still on track to test Rp
9,450 resistance as local companies still need dollars for year-
end debt payment."
Meanwhile, Most Asian currencies were pushed lower Thursday by
a combination of local factors and general dollar firmness
globally.
In Taipei, the New Taiwan dollar slipped as investor pessimism
over banking-sector reforms and political instability sent local
stock prices tumbling by nearly 5 percent.
The dollar closed at NT$32.196, up from NT$32.176 late
Wednesday. The U.S. dollar had hit a high of NT$32.260 in
intraday trading, but was capped by central bank intervention,
dealers said.
The central bank accounted for roughly half of Thursday's
volume of US$674 million, a dealer at a foreign bank estimated.
Market sentiment toward the New Taiwan dollar was dealt a blow
when a central bank deputy governor acknowledged Wednesday that
the asset quality of Taiwan's new private banks was weak, said
Chi Lo, currency strategist at Standard Chartered Bank in Hong
Kong.
"Taiwan over the past 15 years has had no structural policy to
cleanse the banking sector of its bad debts," Lo said. "This time
around the structural problems are more obvious and they're even
catching the eye of authorities," he said.
Against the South Korean won, the dollar closed at 1,138.30
won, up from Wednesday's close of 1,135.70 won.
Intraday trading was driven in part by U.S. dollar-buying by
importers and overseas players in the forward market, dealers
said.
The Philippine peso was pressured by corporate demand for U.S.
dollars and a growing view that the country's political turmoil
may continue for some time.
The peso had rallied in the past two trading sessions on hopes
that President Joseph Estrada might be forced from office quickly
following his impeachment Monday by the House of Representatives.
But the outlook is now less certain, with a bitter battle
expected when Estrada stands trial in the Senate next month over
corruption allegations.
The dollar closed at 49.890 pesos on the Philippine Dealing
System, up from 49.800 pesos at the previous close.
The Singapore dollar and Thai baht couldn't overcome the
general firmness the U.S. dollar has been enjoying lately in
global markets, dealers said.
Late in Asia, the U.S. dollar was quoted at S$1.7482, up from
S$1.7438 late Wednesday.
A stronger-than-expected 16.4 percent rise in Singapore's
October non-oil exports failed to blunt the strength of the U.S.
dollar, which remained well bid in Asia against the backdrop of
rising oil prices and potentially higher U.S. interest rates.
Against the Thai baht, the U.S. dollar was quoted at 43.865
baht, up from 43.605 baht late Wednesday.