Asian currencies mixed; equity inflows boost won<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed late
\nWednesday, largely in rangebound trade, with the dollar failing
\nto make much headway as markets braced for more dismal economic
\ndata out of the U.S., dealers said.<\/p>\n
The steep falls in U.S. June consumer confidence and July
\nChicago Purchasing Manager's Index unveiled Tuesday have prompted
\nsome observers to lower their projections on the National
\nAssociation of Purchasing Managers' number for July, due to be
\nissued at 1400 GMT (9 p.m. Jakarta time) Wednesday.<\/p>\n
The NAPM index was originally expected to have fallen to 44.5
\nin July from 44.7 in June.<\/p>\n
Nervousness ahead of the NAPM data pressured the dollar
\nagainst the yen, in turn providing a mild reprieve for some of
\nthe other Asian currencies, in particular the South Korean won,
\nthe New Taiwan dollar and to a lesser extent, the Singapore
\ndollar, which had recovered from its morning low, dealers said.<\/p>\n
At 0823 GMT, the dollar was quoted at 124.76 yen, below 125.08
\nyen late Tuesday in New York.<\/p>\n
The Indonesian rupiah ended lower on concern that President
\nMegawati Sukarnoputri has failed to name a cabinet over a week
\nafter being elected.<\/p>\n
\"It's taking too long to chose the cabinet. The market's
\nnervous,\" said a trader at a Jakarta-based foreign bank.<\/p>\n
These dollar finished Wednesday's Asian day at Rp 9,600, up
\nfrom Rp 9,525 at Tuesday's close.<\/p>\n
Megawati's complete silence over policy since coming to power
\na week ago is beginning to hurt sentiment, traders said.<\/p>\n
The market is nervous that Megawati's failure to quickly
\nappoint a new cabinet could be due to political bickering over
\nposts among the loose coalition - including the former ruling
\nGolkar Party and the army - that elected her to power last week.<\/p>\n
The South Korean won was the biggest gainer in Asia as massive
\nforeign equity fund inflows overwhelmed the market's doubts of an
\nanticipated economic recovery this year, dealers said.<\/p>\n
The dollar closed at 1,296.5 won, lower than 1,300 won
\nTuesday.<\/p>\n
The benchmark index on the Seoul stock market surged 3.9
\npercent as foreign investors bought a net 237.1 billion won in
\nshares.<\/p>\n
South Korean markets shrugged off poor inflation and trade
\ndata which underscored the country's deteriorating economic
\nenvironment.<\/p>\n
The New Taiwan dollar too received a fillip from foreign
\nequity fund inflows, as foreign institutional investors bought a
\nnet NT$6.36 billion worth of shares on the Taipei bourse
\nWednesday.<\/p>\n
The U.S. dollar closed at NT$34.730, down from NT$35.759
\nTuesday, with Taiwan's central bank buying and selling the U.S.
\ncurrency to smooth volatility in the foreign exchange market,
\ndealers said.<\/p>\n
Also supporting the New Taiwan dollar were U.S. dollar sales
\nby local exporters needing to meet monthly payroll expenses,
\ndealers said.<\/p>\n
The Singapore dollar was weaker at S$1.8038 to its U.S.
\ncounterpart, compared with S$1.8026 late Tuesday. But the
\nSingapore dollar was off its morning low of around S$1.8060, as
\nthe yen's gains helped recoup part of its early losses.<\/p>\n
On the Philippine Dealing System, the dollar closed at 53.770
\npesos, up from 53.540 pesos Tuesday as some banks covered their
\nshort-dollar positions, dealers said. Fears of tighter foreign
\nexchange trading curbs had prompted these banks to sell their
\ndollar positions Monday.<\/p>\n
The peso could, however, find some temporary reprieve in the
\nnear-term from the Philippine commercial banks' agreement late
\nWednesday to help stabilize the ailing currency by boosting the
\nsupply of U.S. dollars in Manila's foreign exchange market.<\/p>\n
The Thai currency was marginally weaker at 45.720 baht per
\ndollar, compared with 45.715 baht late Tuesday.<\/p>",
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