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.