Rupiah, peso lead decline in Asian monies
Rupiah, peso lead decline in Asian monies
SINGAPORE (Dow Jones): Asian currencies weakened across the
board Monday in a trading session dominated by political concerns
in Indonesia and the Philippines.
The Indonesian rupiah, which had received little attention in
recent weeks, returned to center stage amid a slew of negative
news.
The rupiah was pressured by conflicting comments over whether
the central bank would intervene to support the currency, an
announcement that the head of Indonesia's bank restructuring
agency would be replaced, and deteriorating relations with the
U.S.
In late Asian trading Monday, the dollar was quoted at Rp
9,400, up sharply from Rp 9,115 late Friday.
In Manila, the peso tumbled to yet another record low despite
the central bank's announcement that it was considering further
measures to bolster the currency.
Late in Asia, the dollar was quoted at 51.480 pesos, up from
51.080 pesos late Friday.
Concerns the Philippine economy will collapse under the weight
of its widening budget deficit, and that embattled President
Joseph Estrada can't fix the problem, fueled the peso-selling
Monday.
Central bank Governor Rafael Buenaventura said he consulted
with the country's top economic managers, two former central bank
governors and the head of a banking association, to weight
options to stabilize the currency. He declined to disclose what
measures were being considered, but said they would probably be
announced this week.
Analysts said the central bank's first move will probably be
to further tighten the reporting requirements on the foreign
exchange transactions of banks.
The New Taiwan dollar was pulled lower by losses in the stock
market and concerns over the political fallout from the Cabinet's
decision to scrap plans to build a nuclear power plant.
The U.S. dollar closed at NT$32.358, up from NT$32.267 late
Friday.
Opposition parties said they would pursue the no-confidence
motion against the Cabinet over the nuclear plant issue. In
addition, Taiwan's largest opposition party is supporting the
recall of President Chen Shui-bian, which could lead to a new
presidential election.
The Weighted Price Index of the Taiwan Stock Exchange closed
down 146.09 points, or 2.5%.
The South Korean won weakened due to the general bias against
Asian currencies and falling stock prices in Seoul, dealers said.
The dollar finished at 1,137.50 won, up from Friday's close of
1,135.90 won.
The Korea Composite Stock Price Index fell 2.1 percent to end
at 504.73, its lowest finish since February 1999, on program-
related selling.
The negative sentiment toward regional currencies also weighed
on the Singapore dollar.
Late Monday in Asia the U.S. dollar was quoted at S$1.7547 up
from S$1.7525 late Friday in Asia.
Against the Thai baht, the dollar was quoted at 43.745 baht
late in Asian trading, little changed from 43.75 baht late
Friday.
Traders said the upward momentum of the dollar against the
baht has stalled since late last week, when investors began to
disassociate the baht from declining peso.
But the medium-term outlook for the baht remains bearish, amid
political uncertainty before a new government is formed after
general elections expected around yearend.