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.