Asian currencies maintain strenght on domestic factors<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies maintained their
\nrecent strength late Monday on domestic factors, largely
\nunperturbed by the dollar's ascent against the yen and the euro,
\ndealers said.<\/p>\n
The Indonesian rupiah ended higher Monday as state banks sold
\ndollars, possibly on behalf of the central bank.<\/p>\n
Strong state bank dollar selling sparked talk that authorities
\nare hoping to push the rupiah higher this week as the market
\nwaits for President Megawati Soekarnoputri to unveil her new
\ncabinet.<\/p>\n
Delays in appointing the cabinet hurt market sentiment last
\nweek, pushing the rupiah lower, but players are more cautious
\nthis week amid the state bank dollar selling in a thin market.<\/p>\n
The dollar moved to an intraday low at Rp 9,330 before
\nrecovering to close at Rp 9,470, but still weaker than Rp 9,500
\nat Friday's close.<\/p>\n
\"The market is aware the state banks may sell dollars to help
\nthe rupiah before Megawati announces the cabinet,\" said a dealer
\nat a Jakarta-based foreign bank.<\/p>\n
At 0909 GMT (4.09 p.m. Jakarta time), the dollar was quoted at
\n123.91 yen, above 123.70 yen late Friday in New York. The euro
\nwas at $0.8798, below $0.8835 late Friday in New York.<\/p>\n
The Thai baht extended Friday's gains as Prime Minister
\nThaksin Shinawatra's acquittal on charges of financial
\nimpropriety lifted months of political uncertainty, and raised
\nhopes that it would allow the government to step up its fiscal
\nstimulus efforts, market watchers said.<\/p>\n
The dollar was quoted at 45.410 baht, lower than 45.470 baht
\nlate Friday. The dollar found some support around 45.300 baht on
\ncorporate demand for the U.S. currency and with some foreign
\nbanks looking to cover their short-dollar positions, dealers
\nsaid.<\/p>\n
With the country's growing national debt and the economy on
\nthe brink of recession, market watchers said the baht's reprieve
\nwill likely be short-lived.<\/p>\n
Fears the Philippine central bank might tighten foreign
\nexchange rules and monetary policy further to smother excessive
\nspeculative trading against the peso, and to some extent
\nspeculation of capital controls, bolstered the local currency
\nMonday, dealers said.<\/p>\n
The dollar closed at 53.220 pesos on the Philippine Dealing
\nSystem, down from 53.450 pesos Friday.<\/p>\n
The central bank over the weekend said it's considering
\nraising banks' liquidity reserve requirements by another two
\npercentage points to reduce excess peso liquidity that may be
\nused to speculate on the dollar.<\/p>\n
Dollar bulls also turned skittish after President Gloria
\nMacapagal Arroyo reportedly said she didn't rule out the
\npossibility of taking drastic steps to curb excessive speculation
\nagainst the peso, including imposing capital controls as Malaysia
\nhas done. Arroyo reiterated that the peso was fundamentally
\nvalued near 50 pesos.<\/p>\n
The South Korean won recouped its early yen-induced losses on
\nforeign equity fund inflows and exporter dollar sales, dealers
\nsaid.<\/p>\n
The dollar ended at 1,286.2 won, down from Friday's close of
\n1,288.7 won.<\/p>\n
The New Taiwan dollar, too, received a fillip from foreign
\nequity fund inflows and persistent exporter sales of the U.S.
\ncurrency, dealers said.<\/p>\n
The central bank, however, bought around US$200 million
\nthroughout the day, keeping a rein on the New Taiwan dollar's
\nappreciation, dealers said.<\/p>\n
The U.S. dollar closed at NT$34.650, lower than NT$34.669
\nFriday.<\/p>\n
Bucking the trend, the Singapore dollar lost ground as its
\nrecent rally fizzled as the recent wave of long liquidation in
\nthe U.S. currency subsided, and as U.S. investment houses turned
\nbuyers of U.S. dollars, dealers said.<\/p>\n
Against its U.S. counterpart, the Singapore dollar was at
\nS$1.7825, weaker compared with S$1.7768 late Friday.<\/p>",
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