AMERICAN financier George Soros said he believed stability would return to the region's currency markets 'soon', following almost two months of turbulence that has shaved an average 20 per cent off the value of Southeast Asian currencies.
Mr Soros, who has been widely accused of leading the speculative attack on major Southeast Asian currencies, also indicated some units might be due for a rebound.
Asked if the region's currencies were still overvalued at current levels, Mr Soros told the Sunday Morning Post: 'If anything, the pendulum has, in some cases, swung too far in the opposite direction.' Without elaborating on his statement, and denying his involvement in speculative activity in the region's currency markets, he said: 'As for our activities in Southeast Asia, we have recently bought some Indonesian rupiah.' He would not reveal positions he held in any particular currencies.
Mr Soros had previously said that in the past two months - barring US$10 million in sales of the Thai baht - his Soros Fund Management was not involved in selling any other regional currency.
The rupiah led a two-day rally on Wednesday and Thursday, as Southeast Asian currencies rebounded from recent record lows. Analysts put the rebound down to profit-taking by hedge funds.
Mr Soros' name was linked to the rally, as rumours went that he was unwinding some of his positions on the Indonesian currency. The unit firmed up to the 2,700 resistance level after plunging to a record low of 3,045 to the US dollar on Tuesday. The rupiah was floated on August 14.
The rupiah closed the week at 2,725 to the dollar on Friday, falling back 2.4 per cent on the previous day.