Asian currencies down in late trading<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies drifted lower
\nlate Thursday, relinquishing their earlier gains as relief over
\nsigns the U.S. Federal Reserve could pursue a less aggressive
\nmonetary policy faded away, dealers said.<\/p>\n
U.S. consumer price index data unveiled overnight added to
\nrecent evidence the U.S. Federal Reserve could wait until August
\nbefore raising interest rates again.<\/p>\n
Consumer prices rose just 0.1 percent in May after being
\nunchanged in April. When the volatile food and energy components
\nare removed, consumer prices advanced 0.2 percent.<\/p>\n
There wasn't much either to inspire Asian currencies on the
\ndomestic front.<\/p>\n
Even the South Korean won shrugged off a landmark agreement
\nbetween the two Koreas aimed at easing tensions and boosting
\neconomic ties.<\/p>\n
Instead, the won was eroded by a 5.9 percent plunge in the
\nlocal stock market, dealers said. Institutional investors had
\nbailed out of their positions following their recent buying spree
\non the local bourse, dealers said.<\/p>\n
After remaining stuck within a narrow 1.1 won band in listless
\ntrading, the dollar finished at 1,115 won, up from Wednesday's
\nclose of 1,114.20 won.<\/p>\n
Iris Teo, an analyst at Standard & Poor's MMS International,
\nsaid that unless the agreement results in something more
\nconcrete, \"the won will be stuck in range-bound trade.\" She added
\nthat the dollar will likely remain sandwiched between 1,110 won
\nand 1,120 won over the coming week.<\/p>\n
Some dealers also attributed the won's weakness to \"hasty\"
\nconcerns that increased economic aid to North Korea or
\nreunification, albeit a remote prospect at the moment, could
\nprove a heavy fiscal burden for the South. Analysts, however,
\nsaid South Korea should benefit from the reduced military threat
\nfrom the north and this could bode well for its credit ratings.<\/p>\n
In offshore trading, the rupiah broke the Rp 8,500 resistance
\nagainst the dollar earlier in the day on higher domestic rates
\nand expectations an upgrade in Indonesia's sovereign long-term
\nforeign currency rating could be imminent.<\/p>\n
Standard & Poor's Corp. is expected to upgrade Indonesia's
\nsovereign long-term foreign currency rating to either CCC or B
\nfrom \"selective default,\" once the country reaches its final
\nagreement on restructuring commercial sovereign debt via the
\nLondon Club of commercial creditors.<\/p>\n
At 0840 GMT, the dollar was at Rp 8,540, up from Rp 8,510 late
\nWednesday. The dollar had fallen to as low as Rp 8,478 in early
\ntrading.<\/p>\n
In Thailand, the dollar rose to 39.005 baht, from 38.960 baht
\nlate Wednesday on commercial demand for dollars, dealers said.<\/p>\n
The Philippine peso closed lower against the dollar in thin
\ntrading Thursday, weighed by the Thai baht and as banks held on
\nto long U.S. dollar positions, dealers said.<\/p>\n
The dollar closed at 42.535 pesos on the Philippine Dealing
\nSystem, up from Wednesday's close at 42.420 pesos.<\/p>\n
The New Taiwan dollar slipped against its U.S. counterpart
\namid equity fund outflows and U.S. dollar-buying by importers,
\nanalysts said.<\/p>\n
Also pressuring the local dollar was continued dollar-buying
\nby some state-owned enterprises to pay their overseas vendors and
\nsuppliers before the end of the second quarter, analysts said.<\/p>\n
The U.S. dollar traded at NT$30.828, up from NT$30.815 at
\nWednesday's close.<\/p>\n
Bucking the region's weakness, the Singapore dollar edged
\nhigher, buoyed by strong commercial demand at just below the
\nS$1.7200 level against the U.S. currency, dealers said.<\/p>\n
Technical traders were, however, keen to sell the U.S. dollar
\naround S$1.7220 to S$1.7240, capping its ascent, dealers said,
\nadding that the dollar will likely continue to hover around
\nS$1.7180 to S$1.7230 in the short term.<\/p>",
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