Asian currencies down, rupiah leads fall<\/p>\n
Irene Kwek, Dow Jones, Singapore<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies were lower
\nMonday, with the rupiah diving amid concerns that a series of air
\nstrikes against military installations in Afghanistan could spark
\nfurther anti-U.S. protests in Indonesia, the world's most
\npopulous Muslim nation.<\/p>\n
Elsewhere in the region, the reaction in foreign exchange
\nmarkets was somewhat subdued, as a holiday in Tokyo sapped
\nvolume. Bucking the trend, the New Taiwan dollar and the South
\nKorean won ended slightly higher as local players reduced their
\npositions in the U.S. currency.<\/p>\n
Fears that the conflict could escalate prompted a wave of
\nsafe-haven flows into the Swiss franc Monday - and a flight out
\nof currencies seen most vulnerable to heightened tension, such as
\nthe rupiah.<\/p>\n
The U.S. currency finished higher against the Singapore
\ndollar, rising to S$1.7939 from S$1.7838 late Friday. The dollar
\nrose as high as S$1.7960, a two-month high, before drifting back
\ndown.<\/p>\n
In the next few sessions, the U.S. currency will likely be
\nsupported at S$1.7880 and face key resistance at S$1.8000,
\ntraders said.<\/p>\n
In the Philippines, the peso closed slightly lower in range-
\nbound trade, with the dollar closing at its intraday high of
\n51.600 pesos, compared with 51.565 pesos Friday.<\/p>\n
After the close of trading, the central bank governor, Rafael
\nBuenaventura, denied rumors in the market that the bank had
\nintervened in support of the peso. Buenaventura also expressed
\nhope that the peso wouldn't be hurt by news of several bombings
\nin the southern part of the country early Monday.<\/p>\n
In Bangkok, the dollar was at 44.800 baht late Monday, up from
\n44.705 baht, buoyed by its gains against other regional
\ncurrencies. Traders said resistance was pegged at 44.850 baht.<\/p>\n
The New Taiwan dollar ended slightly higher at NT$34.557 to
\nthe dollar, compared with NT$34.559, in light trade, as many
\nplayers retreated to the sidelines due to increased uncertainty.<\/p>\n
In contrast to Indonesia, the Taiwanese central bank had to
\nintervene Monday to prevent the local currency from strengthening
\ntoo quickly, purchasing around US$100 million in exchange for New
\nTaiwan dollars, traders said.<\/p>\n
Meantime, the South Korean won finished slightly stronger, as
\nthe dollar dipped to 1,311.6 won from 1,312.2 won.<\/p>",
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