Asian currencies mixed late, renewed weakness in won<\/p>\n
SINGAPORE (Dow Jones): Asian currencies were mixed late
\nMonday, with the South Korean won and the New Taiwan dollar
\nfeeling the brunt of a selloff on their respective local bourses,
\ndealers said.<\/p>\n
In Southeast Asian markets, the Thai baht and the Singapore
\ndollar were stronger, while the Indonesian rupiah and the
\nPhilippine peso were weaker.<\/p>\n
Despite the market's nervousness about further social unrest
\nin Jakarta - following a 12 percent fuel price hike over the
\nweekend and public outrage over a court's decision last week to
\ndismiss the corruption trial of former President Soeharto - the
\nrupiah's losses were limited Monday<\/p>\n
Still, the dollar managed to regain its ground, as it edged up
\nto Rp 8,800, from Rp 8,775 late Friday.<\/p>\n
There was some dollar-buying by corporates at Rp 8,775 to
\nservice debt and for import needs, although demand wasn't strong.<\/p>\n
The market also ignored the handing down of the draft 2001
\nbudget, with almost all figures revealed already previously
\nannounced.<\/p>\n
Dealers expect a range of Rp 8,750 to Rp 8,850 Tuesday.
\nrupiah's losses were limited Monday.<\/p>\n
A credit ratings upgrade, which came at the higher end of
\nexpectations, provided some respite for the rupiah, but only
\ntemporarily.<\/p>\n
Standard & Poor's Corp. Monday raised its long-term and short-
\nterm foreign currency ratings on Indonesia to single-B-minus and
\nC, respectively, after the London Club agreed to restructure $340
\nmillion in debt last week. S&P had previously assigned selective
\ndefault ratings on both the long and short-term ratings.<\/p>\n
"It's a long way off to investment grade, but it's still
\npositive to sentiment that you get a double-notch upgrade," said
\nMansoor Mohi-uddin, regional currency strategist at UBS Warburg.<\/p>\n
The South Korean won succumbed to renewed pressure as the
\nlocal bourse plummeted by almost 4 percent, following steep
\nlosses on Wall Street last Friday, and on dollar-buying by
\noffshore participants in the non-deliverable forward market.<\/p>\n
Fresh doubts about South Korea's efforts to sell its
\ndistressed assets, an important part of the government's economic
\nrecovery program, had also cast a shadow on the won, dealers
\nsaid.<\/p>\n
The dollar finished at 1,118 won, up from Friday's close of
\n1,115 won.<\/p>\n
The dollar is set to trade between 1,115 won and 1,125 won for
\nthe rest of the week, Oh said, adding, however, that he doubted
\nthe dollar could head toward 1,125 won this week, unless there
\nare "fresh bad factors."<\/p>\n
After earlier yielding to the pressure from the Taipei bourse,
\nwhich sank 2.6 percent to a near 20-month low, intervention by
\nthe local central bank helped the New Taiwan dollar recoup its
\nlosses, dealers said.<\/p>\n
The U.S. dollar finished at NT$31.314, little changed from
\nSaturday's close of NT$31.316. The U.S. dollar had hit an
\nintraday high of NT$31.326.<\/p>\n
In Southeast Asia, hopes for a short-term rally in the Thai
\ncurrency were dashed again, after the dollar failed to be
\nsuppressed below the 42 baht support level amid renewed political
\njitters. The dollar had briefly crossed below the 42 baht level
\nmark several times last week.<\/p>\n
Around 0905 GMT, the dollar was at 42.175 baht, still below
\n42.220 baht late Friday. Dollar long-liquidation earlier in the
\nday had pushed the dollar below 42 baht psychological support,
\ndealers said.<\/p>\n
Against the Singapore dollar, which largely mirrored the
\nbaht's movements, the U.S. currency slipped to S$1.7397, from
\nS$1.7417 late Friday.<\/p>\n
On the Philippine Dealing System, the dollar was at 46.280
\npesos, up from 46.150 pesos Friday.<\/p>",
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