Rupiah inches up at donors' support of state budget
Rupiah inches up at donors' support of state budget
Leigh Murray and Netty Ismail, Dow Jones, Jakarta and Singapore
The Indonesian rupiah closed higher against the dollar
Thursday after international donors pledged US$3.14 billion to
help finance the 2002 budget deficit, traders said.
After touching an intraday high of Rp 10,600, the dollar
closed at Rp 10,485 compared with Rp 10,638 Wednesday.
News that Indonesia will receive the funds from international
donors for next year's budget lifted sentiment toward the local
currency.
Jemal-ud-din Kassum, the World Bank's East Asia and Pacific
vice president, said the funds reflect the commitment of the
lenders toward Indonesia, under the Consultative Group On
Indonesia.
However, he said they had also urged the Indonesian government
to work quickly on reforms to help spur an economic recovery.
Traders said Bank Indonesia also intervened heavily to bring
the dollar back below Rp 10,500.
They said further central bank intervention is expected to
keep the pair in a Rp 10,400 to Rp 10,500 range Friday.
Other Asian currencies were higher late Thursday, with the
South Korean won continuing to outshine its regional peers as it
climbed to its strongest level in almost two-months.
The dollar ended at 1,285.10 won, down from 1,292.60 won
Wednesday.
As expected, the central bank left its overnight call rate
unchanged at 4 percent, as the South Korean economy showed signs
of a "slight" improvement in September, largely as a result of an
increase in domestic demand.
The New Taiwan dollar ended at its strongest level in almost
five months, even after relinquishing part of its earlier gains,
as the central bank displayed its resolve to keep the U.S.
currency above NT$34.500, dealers said.
Buoyed by the regional currency strength and seasonal
remittance inflows from overseas workers, the Philippine currency
ended firmer at 51.750 pesos to the dollar, from 51.880 pesos
Wednesday.
The central bank's decision to slash its overnight rates by 50
basis points and restore tiered rates on its overnight borrowing
facility - a further de facto easing - failed to stir the peso
market, dealers said.
The Thai currency was stronger at 44.480 baht per dollar,
compared with 44.640 baht late Wednesday.
Uninspired by the regional currency strength, the Singapore
dollar was steady from late Wednesday, at S$1.8169 against the
U.S. currency.
Singapore Telecommunications Ltd.'s announcement late
Wednesday it would issue the equivalent of US$1.5 billion in
bonds contributed to the Singapore dollar's rise overnight,
dealers said.