Asian currencies fall late, market awaits data<\/p>\n
Nirmala Menon, Dow Jones, Kuala Lumpur<\/p>\n
Most Asian currencies fell late Monday as the U.S. dollar firmed
\nagainst the yen on short-term position adjustments, but trading
\nwas dulled by a U.K. bank holiday and the upcoming long Labor Day
\nweekend in the U.S.<\/p>\n
Market players also kept to the sidelines ahead of the issue
\nof several key economic indicators out of the U.S. and Japan this
\nweek, as well as U.S. Federal Reserve Chairman Alan Greenspan's
\nspeech at an economic symposium Friday.<\/p>\n
\"People are not taking positions. There's hardly a sound in
\nthe market. The market is dead,\" declared a regional currency
\ndealer at a Singapore-based Asian bank.<\/p>\n
The health of the U.S. economy remains the key factor
\nunderpinning near term market sentiment, with players largely
\nneutral to economic indicators from individual Asian countries.<\/p>\n
So far, data from the U.S. has sent mixed signals, and until
\nthere's some clarity, Asian currencies will likely remain locked
\nin range-bound trading, market participants said.<\/p>\n
\"The market is very uncertain (on) what's the direction going
\nforward. Most of the dollar\/regionals are going to be trapped in
\nrange. The upside is limited, so is the downside unless there are
\nclearer prospects (about the U.S. economy),\" said Jimmy Koh, head
\nof treasury research at Singapore's United Overseas Bank.<\/p>\n
To that end, Greenspan's remarks on the economy Friday will be
\nclosely watched, Koh said.<\/p>\n
This will be Greenspan's first public appearance after the
\nAug. 13 Federal Open Market Committee meeting where the Fed opted
\nto keep interest rates unchanged.<\/p>\n
Asian currencies mostly ignored Hong Kong Executive Council
\nmember James Tien's comments on the Hong Kong dollar's peg to the
\nU.S. currency.<\/p>\n
Tien Sunday said the abolition of the exchange rate system
\nwouldn't have a significant impact overall.<\/p>\n
His remarks came as talk about a change to the peg resurfaced
\nin the market.<\/p>\n
But \"people are immune to it (the talk),\" said an Asian bank
\ndealer in Singapore, who noted that such rumors pop up
\noccasionally in the market.<\/p>\n
The New Taiwan dollar ended at its lowest level in nearly
\nthree months as offshore players vigorously covered their short
\npositions on the U.S. dollar.<\/p>\n
The U.S. dollar closed at NT$34.245 - its highest since May 28
\n- from NT$34.139 Friday.<\/p>\n
The dollar firmed for the third consecutive session against
\nthe South Korean won, which moved in tandem with the Japanese
\ncurrency.<\/p>\n
The dollar ended at 1,205.3 won, up from 1,202.6 won Friday,
\nafter moving between 1,197.5 won and 1,205.8 won intraday.<\/p>\n
The U.S. dollar also firmed against the Indonesian rupiah in
\nline with the regional trend, and also real corporate and
\nimporter demand, but its rise was capped as the central bank
\nactively sold the U.S. currency, dealers said.<\/p>\n
The dollar rose as high as Rp 8,975 in intraday trading but
\npulled back after central bank intervention. The dollar was
\nquoted at Rp 8,935 late in Asia, from Rp 8,890 Friday.<\/p>\n
The U.S. dollar edged up against its Singapore counterpart as
\nthe weaker yen sparked modest buying of the U.S. unit in a thin
\nmarket.<\/p>\n
Late in Asia, the U.S. dollar was quoted at S$1.7586, from
\nS$1.7566 late Friday.<\/p>\n
Offshore dollar buying helped the U.S. currency edge up
\nagainst the Thai baht, although the local unit recovered some
\nground late in Asia.<\/p>\n
News that the Thai government may repay loans borrowed under
\nan expired International Monetary Fund rescue fund by January, a
\nyear ahead of schedule, didn't affect the market, dealers said.<\/p>\n
Thailand owes about US$1 billion directly to the IMF, and
\nabout $6 billion to other donors in the rescue program.<\/p>\n
Analysts said early repayment would be positive for sentiment
\nas it would ensure the debt is eliminated while foreign reserves
\nare high.<\/p>\n
Late in Asia, the dollar was quoted at 42.296 baht, compared
\nwith 42.335 bath Friday.<\/p>\n
Dollar selling by exporters helped the Philippine peso erase
\nearly losses and gain ground against the U.S. unit for the first
\ntime after seven straight sessions of losses.<\/p>\n
The U.S. currency fell back from a high of 52.410 pesos to end
\nat its intraday low of 52.230, pesos down from 52.365 pesos
\nFriday.<\/p>",
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