Asian currencies mostly down, economic concerns cited<\/p>\n
SINGAPORE (Dow Jones) : Asian currencies retreated Tuesday as
\ninvestor concerns over weakening economic fundamentals in the
\nregion triggered a new round of dollar buying.<\/p>\n
Efforts by Japan's Ministry of Finance to weaken the yen also
\nhelped provide a base for the dollar against Asian currencies.<\/p>\n
However, analysts cautioned that the dollar remains vulnerable
\nin the face of the deteriorating U.S. economy, and that the yen
\nstrength will persist as the repatriation of Japanese assets
\ncontinues amid uncertainty over how the U.S. will respond to the
\nSept. 11 terrorist attacks in the U.S.<\/p>\n
In trading Tuesday, the Singapore dollar fell to a near seven-
\nweek low against the U.S. currency.<\/p>\n
\"The resilience of the U.S. dollar in Asia amidst yen strength
\nin starting to attract the attention of the market,\" DBS Bank
\nsaid in a note to clients.<\/p>\n
The acquisition of foreign companies by Singaporean firms,
\nsuch as Singapore Telecommunications Ltd's takeover of
\nAustralia's Cable & Wireless Optus, has resulted in capital
\noutflows that have put additional pressure on the Singapore
\ndollar.<\/p>\n
The U.S. dollar hit an intraday high of S$1.7730 in intraday
\ntrade Tuesday, its highest level since S$1.7791 on Aug. 9.<\/p>\n
The U.S. dollar gave up some of its gains late in the session
\nbut still managed to end the Asian trading day at S$1.7696, up
\nfrom S$1.7556 late Monday.<\/p>\n
However, analysts at BNP Paribas and DBS Bank, say the longer-
\nterm trend for the U.S. dollar is lower.<\/p>\n
Once military action starts in response to the terrorist
\nattacks investors will be prepared to short the U.S. dollar, said
\nThio Chin Loo, regional currency strategist at BNP Paribas.<\/p>\n
She said while the U.S. dollar may go higher in the near term,
\nit could eventually retreat to S$1.7200 and possibly form a base
\naround S$1.7000.<\/p>\n
The Indonesian rupiah closed steady against the U.S. dollar in
\nvery dull trading Tuesday, though dealers warn the local unit
\nwill weaken if trouble erupts in this predominantly Muslim nation
\nin the event of a U.S. attack on Afghanistan.<\/p>\n
Radical Muslim groups in Indonesia have threatened to target
\nU.S. interests here if Washington punishes Afghanistan's Taliban
\nrulers for harboring Osama bin Laden, the main suspect behind the
\nSept. 11 terrorist attacks on the U.S.<\/p>\n
The dollar closed at Rp 9,510 Tuesday, marginally above
\nMonday's Rp 9,505.<\/p>\n
For the moment, market participants will likely adopt a
\ncautious stance and the dollar is expected to trade between Rp
\n9,485 and Rp 9,525 Wednesday.<\/p>\n
The New Taiwan dollar closed slightly higher as U.S. dollar
\nsales from exporters offset mild U.S. dollar demand from foreign
\ninstitutional investors, dealers said.<\/p>\n
The U.S. dollar closed at NT$34.574, up from NT$34.578 a day
\nearlier.<\/p>\n
The dollar closed at 1,308.7 won, up from Monday's close of
\n1,307.20 won.<\/p>\n
Earlier in the day the dollar had fallen as low as 1,304.7 won
\nas local stocks moved higher, boosting sentiment for the won.<\/p>\n
Uncertainty regarding possibility of military action against
\nsuspected terrorists also weighed on the Philippine peso.<\/p>\n
The dollar closed at 51.240 pesos on the Philippine Dealing
\nSystem, up from 51.185 pesos Monday.<\/p>\n
Traders said U.S. dollar recouped Monday's losses as banks
\nbought back dollars that had been sold in the past few days.<\/p>\n
Against the Thai baht the dollar traded at 44.455 bath late in
\nAsia, up from 44.390 bath late Monday.<\/p>",
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