Asian currencies mostly down on yen's sharp drop<\/p>\n
SINGAPORE (Dow Jones): The floundering Japanese yen late
\nFriday dealt a further blow to most Asian currencies, already
\nstaggering under the weight of their countries' economic and
\npolitical woes, market watchers said.<\/p>\n
The only currency which bucked the downtrend was the Thai
\nbaht, which rebounded on liquidation of long dollar positions
\nlate in the day, after having been dragged down by the yen's
\nweakness in early trading.<\/p>\n
The dollar broke above Y118.00 for the first time in 18 months
\nFriday as growing pessimism toward the Japanese economy
\nencouraged yen selling. Strong signals by Japanese monetary
\nofficials welcoming a weaker yen also provided the greenlight for
\nthe currency's decline.<\/p>\n
Around 0755 GMT (2:55 a.m. EST), the dollar was at Y118.13,
\nafter having come off from its intraday peak of Y118.25, the
\nhighest since July 22, 1999.<\/p>\n
The South Korean won and the New Taiwan dollar felt the brunt
\nof the yen's weakness. The two currencies usually track the yen
\nsince their economies compete in similar export markets.<\/p>\n
In Seoul, the dollar edged up to 1,281.10 won, from Thursday's
\nclose of 1278.10 won.<\/p>\n
Against the New Taiwan dollar, the U.S. currency was at
\nNT$32.699, up from NT$32.635 Thursday.<\/p>\n
In Southeast Asia, the Indonesian currency, which has been
\nrecently marginalized in offshore currency markets, will likely
\ncome under assault next week as political temperatures are
\nexpected to rise.<\/p>\n
Fears that rumored antigovernment protests next week could
\nturn violent weighed on the rupiah, although dollar-selling by
\nstate banks helped the Indonesian currency recover from its
\nintraday low of Rp 9,650 against the dollar, dealers said.<\/p>\n
Parliament Monday resumes its probe of two financial scandals
\nlinked to President Abdurrahman Wahid, which might renew fears of
\nimpeachment and in turn, roil the rupiah.<\/p>\n
The graft trial of Bank Indonesia Governor Sjahril Sabirin,
\ndue to begin next Wednesday, is also making investors cautious,
\ndealers said.<\/p>\n
Late in the day, the dollar was at Rp 9,608, up from Rp 9,588
\nlate Thursday.<\/p>\n
\"We will see Rp 9,750 to Rp 9,800 by the end of the month,\"
\nsaid a dealer at a European bank.<\/p>\n
The slump in Asian foreign exchange markets cast a pall on the
\nSingapore dollar and the Philippine peso.<\/p>\n
Against the Singapore dollar, the U.S. currency was at
\nS$1.7342, up from S$1.7338 late Thursday.<\/p>\n
On the Philippine Dealing System, the dollar closed at 51.59
\npesos, higher than 51.325 pesos Thursday.<\/p>\n
After failing to make headway above 43.600 baht, participants
\nunwound their long dollar positions ahead of the weekend, helping
\nthe Thai currency regain its footing, dealers said.<\/p>\n
Bank of Thailand Friday ruled that financial institutions
\nselling foreign currency for repayment and servicing of clients'
\nforeign debt will be required to obtain written evidence from the
\nclients of the loans and terms.<\/p>\n
This provided the market with an excuse to lock in their
\nprofits, after pushing down the baht in the past two days,
\ndealers said.<\/p>\n
The dollar eased to 43.415 baht, from 43.525 baht late
\nThursday.<\/p>",
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