Rupiah rebounds from 10-week low

Rupiah rebounds from 10-week low

SINGAPORE (Dow Jones): The Indonesian rupiah bounced back from
its 10-week low to close flat Friday as market participants took
profit on the U.S. dollar ahead of the weekend, dealers said.

After falling to a 10-week low of Rp 9,035 per dollar earlier
in the day, the rupiah closed at Rp 8,922, unchanged from its
close late Thursday in Asia.

The rupiah fell at its opening, taking a lead from the
continued slide in the Philippine peso, dealers said.

"Most participants took profit shortly after the dollar rose
above Rp 9,000 as they have built long dollar positions over the
last three days," said a dealer with a foreign bank.

Dealers said they didn't detect any intervention from the
central bank Friday to help the rupiah.

Bank Indonesia's Deputy Governor Achjar Iljas said Friday that
the central bank won't intervene unless it's convinced such a
move will be effective.

Dealers said that the dollar will go back to above Rp 9,000
level next week as long as the peso and other regional currencies
continue to weaken.

Meanwhile, an escalation of violence in the Middle East rocked
global equity markets, ignited a savage oil price rally, and
drove all Asian currencies lower.

The Philippine peso led the decliners again, falling for a
fifth straight session on a deepening political scandal
surrounding allegations President Joseph Estrada received
millions of dollars in payoffs from illegal gambling operators.

Although the peso ended the week at Thursday's all-time
intraday low against the dollar of 48.500 pesos, the rate hike
has at least stabilized the currency, which has fallen 6 percent
during the past four weeks, and 17 percent so far this year.

Rising crude prices also hurt the peso.

The Philippines like most Asian economies - including South
Korea, Thailand and India - is heavily dependent on oil imports
for its energy needs.

The dollar ended at 48.500 pesos, up from 47.700 pesos at
Thursday's close.

The Singapore dollar was weaker despite apparent intervention
early in the day by the Monetary Authority of Singapore to
support the local dollar.

The U.S. dollar late was at S$1.7550, up from S$1.7523 a day
earlier.

Meanwhile, Bank of Thailand acknowledged for the first time
there are signs of speculation against the baht in the foreign
exchange market, activity that as a general rule might prompt a
central bank to intervene.

Chetthavee Charoenpitaks, assistant central bank governor,
told reporters the Bank is closely monitoring movements in the
market, but declined to comment on whether the central bank plans
to intervene to support the baht.

The baht hit a 28-month low Friday of 43.68 baht against the
dollar, and late in the session was at 43.580 baht, down from
43.295 baht.

In North Asia, the Korean won sank as local stock prices
slumped 1.9 percent.

The dollar ended trade in Seoul at 1,128.5 won, up from
1,122.10 won late Thursday. While in Taipei, the New Taiwan
dollar dropped sharply to finish the week at NT$31.650 against
the U.S. currency, down from NT$31.300 a day earlier.