Asian currencies mostly up on yen, easing political fears<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies extended their
\nrecent gains late Thursday, basking in the glow of the yen's
\nstrength and as political pressures in Indonesia and the
\nPhilippines ebbed, dealers said.<\/p>\n
Except for the Singapore dollar, which was weaker, regional
\ncurrencies continued to find comfort in the yen's rise, which
\ncontinued to be fueled by hopes that Japan's new Prime Minister
\nJunichiro Koizumi will push through long-awaited economic
\nreforms.<\/p>\n
But analysts don't expect the euphoria surrounding the new
\ngovernment to last, since a weaker yen would be needed to revive
\nJapan's economy.<\/p>\n
The Indonesian rupiah ended slightly higher in thin range-
\nbound trading Thursday, as the market waits to see whether
\nembattled President Abdurrahman Wahid can strike a deal with his
\npolitical opponents.<\/p>\n
The dollar closed at Rp 11,125, down from Rp 11,160 Wednesday,
\nafter trading between Rp 11,000 and Rp 11,200.<\/p>\n
The U.S. currency fell to its intraday low amid some position-
\nsquaring from players that were long on dollar, traders said.<\/p>\n
Players had built up long-dollar positions earlier this week
\nin anticipation that Jakarta would explode in street violence
\namid Parliament's decision to issue a second censure to Wahid
\nover his alleged involvement in two financial scandals.<\/p>\n
But Jakarta remained quiet, and the rupiah has moved slightly
\nhigher as players liquidated their long positions.<\/p>\n
The dollar had fallen to as low as Y121.30 in early Asian
\ntrading. At 0830 GMT, the dollar was quoted at Y121.59, down
\nslightly from Y121.64 late in New York Wednesday, and below
\nY122.10 late in Asia Wednesday. Trading in the yen was quiet due
\nto the Golden Week holidays.<\/p>\n
The strength across regional foreign exchange markets failed
\nto inspire the Singapore dollar, which slipped below S$1.8200
\nagainst the U.S. currency.<\/p>\n
The Singapore dollar, which has recently been a laggard in the
\nregion, remained pressured by strong demand for U.S. dollars by
\nlocal companies seeking to fund their overseas acquisitions, and
\nlingering worries over the fate of the ringgit peg, dealers said.<\/p>\n
At 0815 GMT (3.15 p.m. Jakarta time), the Singapore dollar was
\nquoted at S$1.8201, weaker compared with S$1.8180 late Wednesday.<\/p>\n
Analysts view Malaysia's decision Wednesday to abolish its 10
\npercent exit tax on repatriated capital gains for foreign
\ninvestors as an attempt to relieve the pressure on the ringgit
\npeg's of 3.80 ringgit to the dollar.<\/p>\n
The regional currency weakness since the start of the year and
\nMalaysia's shrinking foreign exchange reserves have, over the
\npast several weeks, fueled speculation of a possible devaluation
\nof the ringgit, although government officials have insisted that
\nthe currency peg will stay.<\/p>\n
The South Korean won was the biggest beneficiary of the yen's
\ngains and continued to outperform its regional peers.<\/p>\n
The dollar finished at 1,294.5 won, down from Wednesday's
\nclose of 1,302.8 won.<\/p>\n
Foreign equity fund inflows and the yen's rise bolstered the
\nNew Taiwan dollar, which ended marginally higher at NT$32.89
\nagainst the U.S. currency, compared with NT$32.90 Wednesday.<\/p>\n
The Philippine peso continued to be soothed by President
\nGloria Macapagal Arroyo's decisiveness in crushing efforts to
\nunseat her and the swift restoration of order in Manila streets,
\nfollowing violent clashes between security forces and supporters
\nof arrested leader Joseph Estrada Tuesday.<\/p>\n
The dollar closed at 50.280 pesos on the Philippine Dealing
\nSystem, down from 50.730 pesos Wednesday.<\/p>\n
The Thai currency was marginally higher at 45.45 baht per
\ndollar, from 45.47 baht late Wednesday.<\/p>",
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