Asian currencies mostly down, rupiah slightly firmer<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies sagged late
\nThursday, with the South Korean won extending its recent
\ninexorable decline as the market grew immune to the central
\nbank's hackneyed verbal mediation, dealers said.<\/p>\n
The New Taiwan dollar also lost some ground, falling for the
\nninth consecutive session to a fresh 19-month low.<\/p>\n
In Southeast Asia, the Philippine peso and the Thai baht were
\nweaker, while the Singapore dollar and the Indonesian rupiah were
\nslightly firmer.<\/p>\n
The rupiah ended slightly stronger in Asian trade Thursday as
\nparticipants unloaded long-dollar positions.<\/p>\n
Traders said the market was squaring positions despite
\ncontinued concerns over the resignation last week of Bank
\nIndonesia's senior governors, amid political wrangling over the
\ncentral bank's status.<\/p>\n
The dollar traded in a narrow range Thursday and closed at Rp
\n9,420 in Asia, down from Rp 9,450 at Wednesday's close.<\/p>\n
\"The market was caught long, so we saw some participants
\nunloading their positions,\" said a foreign bank trader.<\/p>\n
However, investors remain cautious over Bank Indonesia's
\npolicy after the resignation of acting Governor Anwar Nasution
\nand four other governors, he said.<\/p>\n
Thanks to the rupiah, the Singapore dollar was firmer at
\nS$1.7548 against its U.S. counterpart, compared with S$1.7564
\nlate Wednesday.<\/p>\n
Analysts said the South Korean won and the New Taiwan dollar
\nwill continue to be undermined by the cloudy outlook for the
\nsemiconductor sector, which their economies depend on, and easing
\ndemand from the U.S., which is slowing the pace of these
\ncountries' exports.<\/p>\n
And as they compete for shrinking demand for their exports,
\nboth currencies will also weaken in sync with the Japanese yen.
\nThe yen is widely expected to languish against the dollar, after
\nJapan's political disarray drove it through the key Y110 support,
\nanalysts added.<\/p>\n
Domestically, political uncertainties in Taipei and hiccups in
\nSouth Korea's restructuring efforts will drive away foreign
\ninvestors, who have already turned skittish toward emerging
\nmarkets in recent months, said Lo.<\/p>\n
Leading the descent, the won lost 1.4 percent to hit its
\nlowest level in more than a year due to local and offshore dollar
\ndemand, despite market rumors of central bank intervention, which
\nsubsequently appeared unfounded, and the trite verbal mediation,
\ndealers said.<\/p>\n
The dollar finished at 1,193 won, its highest close since Nov.
\n2, 1999, when it ended at 1,193.30 won. The dollar closed
\nWednesday at 1,176.90 won.<\/p>\n
Against the New Taiwan dollar, the U.S. currency closed at a
\nnew 19-month high of NT$32.931, up from NT$32.870 Wednesday, as
\nforeign equity funds spooked by domestic political uncertainties
\nand a slowing economy flowed out Taipei.<\/p>\n
Reversing from its recent gains, the Philippine peso retreated
\nThursday on expectations that the central bank will cut its
\npolicy rates as early as Friday, during its board meeting,
\ndealers said.<\/p>\n
The dollar closed at 49.380 pesos on the Philippine Dealing
\nSystem, up from Wednesday's close of 49.120 pesos.<\/p>\n
After rebounding sharply in New York trading hours Wednesday,
\nthe Thai baht lost ground as tight liquidity in the forward
\nmarket eased, dealers said.<\/p>\n
Around 0915 GMT, the dollar was at 43.855 baht, up from the
\novernight low of 43.35 baht Thursday.<\/p>\n
Higher offshore swap premiums, which raises short-term funding
\ncosts, had recently prompted offshore players to cover their
\nshort baht positions, fueling the currency's gains.<\/p>\n
Thai central bank Governor Chatu Mongol Sonakul said Thursday
\nBank of Thailand reserves the right to intervene in the market,
\nbut will do so as little as possible, implying that the central
\nbank will likely tolerate the baht's current levels.<\/p>",
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