Rupiah hits 31-month low in bad day for Asian currencies
Rupiah hits 31-month low in bad day for Asian currencies
SINGAPORE (Dow Jones): Most Asian currencies weakened on
Friday, with the ever-worsening political situation in Indonesia
pushing the rupiah to a 31-month low.
The only regional currency to gain against the U.S. dollar was
the New Taiwan dollar, which finished marginally higher amid
continued stock market inflows from foreign investors.
The rupiah continued to lose ground Friday with the dollar
rising to Rp 11,775 late in the day. That was up from Rp 11,095
late Thursday and marked the rupiah's worst performance since
mid-September 1998 when the dollar reached Rp 11,800.
President Abdurrahman Wahid a day earlier upped the ante in
his battle with parliament, saying that 400,000 of his supporters
were ready to descend on Jakarta if lawmakers try to impeach him
for alleged corruption.
Wahid's comment triggered a round of rupiah selling that
pushed the dollar through the psychological barrier of Rp 11,000.
Much of the demand for dollars came from local corporations that
need the U.S. currency for business transactions and to repay
debt, dealers said.
General yen softness against the dollar contributed to the
declines in most other Asian currencies, analysts said.
The dollar surged more than one yen during Asian trading on
Friday as Japanese institutional investors bought the U.S.
currency after its recent slide.
Late in Asia the dollar was trading around Y122, up from
Y120.90 in Sydney.
The New Taiwan dollar was just able to shrug off the dollar's
rise in other Asian regions and finish a touch stronger against
the U.S. currency.
At the close of Asian trading the U.S. dollar was quoted at
NT$32.890, down from NT$32.899 late Thursday.
Foreign institutional investors supported the local currency,
buying a net NT$5.58 billion (US$169 million) worth of shares on
the Taiwan Stock Exchange. So far this month, foreign investors
have bought a net NT$10.75 billion in shares.
Against the South Korean won, the dollar closed at 1,313 won
up from Thursday's close of 1,298.0 won.
Some market players were uncomfortable with the won's rise
against the dollar Thursday and began buying dollars at the 1,300
won level Friday, dealers said.
The peso tracked the yen and other regional currencies lower.
In addition, the Philippines' less than spectacular economic
outlook has given market participants little encouragement to buy
the local currency.
The dollar finished at 50.280 pesos on the Philippine Dealing
System, up from 50.060 pesos Thursday.
Philippine Central Bank Governor Rafael Buenaventura said
Friday the government expects the economy's pace of growth to
slow to 2.0 percent from 2.5 percent in the first half of the
year after expanding at a 3.6 percent rate in the fourth quarter.
Buenaventura predicted that the peso "along with other
regional currencies, will continue to be on the weak side," at
around the 50-per-dollar level.
The Singapore dollar weakened amid talk of merger and
acquisition-related U.S. dollar buying and on concerns over
Indonesia's worsening political situation.
The U.S. currency was quoted at S$1.8123 in late Asian trade,
up from S$1.8026 late Thursday.
Against the Thai baht, the dollar was trading at 45.535 baht,
up from 45.225 baht late Thursday.