Asian currencies mixed; Japan, U.S. holidays mute activity<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed in thin
\ntrading late Monday as holidays in Japan and the U.S. muted
\nmarket activity.<\/p>\n
Traders said they had expected a relatively quiet session and
\ngot one, given the absence of any fresh news to move the markets.<\/p>\n
Even the recently volatile Indonesian rupiah remained
\nrelatively quiet ahead of some key political decisions being made
\nthis week.<\/p>\n
Indonesian President B.J. Habibie is expected to decide this
\nweek whether to order the prosecution of former President
\nSoeharto. The country's top legal officer, Ismudjoko, recommended
\nMonday that the corruption case against the ex-president be
\ndropped due to lack of evidence. His comments had little effect
\non the rupiah.<\/p>\n
Leaders of the ruling Golkar Party start debating Tuesday
\nwhether to keep or dump Habibie as its candidate for the
\npresidential election Oct. 20.<\/p>\n
At 0800 GMT (4:00 a.m. EDT), the U.S. dollar was trading at
\n7,810 rupiah, just up from Rp 7,760 in late Asian trading Friday.
\nThe U.S. dollar was also trading at 40.045 Thai baht, up from
\n40.015 baht late Friday. Traders said the U.S. dollar, which
\nstarted the session drifting higher, was sold off at just under
\n40.50 baht.<\/p>\n
Traders and currency strategists remain mixed over the
\nfortunes of the Thai baht. Year-end pressures such as profit-
\ntaking and even concern the country will be hit by Y2K computer
\nbug-related problems are being offset by expectations that
\nMoody's Investor Services may issue a sovereign upgrade in coming
\nweeks.<\/p>\n
While a Moody's upgrade may seem justifiable, local sources
\nstrongly reject the idea,\" said the Hong Kong-based Bank of
\nAmerica's currency strategy group in its daily market comment.<\/p>\n
\"On the plus side, improved extended liquidity and much
\nstronger macro numbers since the downgrade have created the
\nexpectation of an upgrade.\"<\/p>\n
However, the strategists at Bank of America said Moody's might
\ndelay any upgrade until the new year.<\/p>\n
\"Increased political uncertainty (with an election possible in
\nthe first quarter) and Y2K issues represent new impediments,\" the
\nbank group said. \"Most importantly, banking system restructuring
\nis behind schedule and, with nonperforming loans barely off their
\npeaks, it may be hard to justify an upgrade.\"<\/p>\n
Against the Singapore dollar, the U.S. dollar was trading at
\nS$1.6772, down from S$1.6796 in late Asian trading Friday.<\/p>\n
\"The Singapore dollar has traded in an extremely tight range,
\nconsistent with the absence of news from the Singapore markets,\"
\nthe Bank of America strategists said. \"Weak regional tone and
\nfear of authorities (intervening in the market) have combined to
\nthwart Singapore dollar's upside.\"<\/p>\n
On the Philippine dealing system, the U.S. dollar was trading
\nat 40.255 pesos, just down from 40.465 pesos late Friday.<\/p>\n
Against the South Korean won, the U.S. dollar was trading at
\n1204.2 won, up from 201.2 won in late Asian trading Friday. In
\nTaiwan, the U.S. dollar was at NT$31.765, just down from
\nNT$31.775 Friday.<\/p>",
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