Asian currencies mostly up on yen's bounce, U.S. economy<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies were higher late
\nTuesday as the yen's bounce and signs that the U.S. industrial
\nsector may be bottoming out brought some relief to the market,
\ndealers said.<\/p>\n
The yen had gained on Japanese Prime Minister Junichiro
\nKoizumi's remarks to the Financial Times that Japan has "no
\nintention whatsoever of consciously bringing the yen lower."<\/p>\n
At 0845 GMT (3.45 p.m. Jakarta time), the dollar was quoted at
\n123.93 yen, below 124.33 yen late Monday in New York.<\/p>\n
Market participants also welcomed the latest data showing an
\nimprovement in the beleaguered U.S. industrial sector.<\/p>\n
The June National Association of Purchasing Management
\nmanufacturing index was 44.7, better than economists'
\nexpectations of a 42.0 reading. Although a reading under 50
\nindicates a contracting manufacturing sector, the index implies a
\nsmall growth in the overall economy.<\/p>\n
But the data won't be enough to provide an antidote to the
\nregional malaise, analysts said.<\/p>\n
"For now, the figures present a glimmer of hope for exporters
\nin Asia ex-Japan," said Philip Wee, a market strategist at
\nSingapore's DBS Bank. "Unfortunately, a modest U.S. recovery is
\nunlikely to help in a big way, not with the Tankan survey
\nreaffirming recession fears in Japan, and Europe increasingly
\nunder recession watch."<\/p>\n
Meanwhile, the Indonesian rupiah ended flat after giving up
\nall of its earlier gains in thin trade, as some local
\nparticipants reversed their dollar selling.<\/p>\n
After falling to an intraday low of Rp 11,290, the dollar
\nended at Rp 11,320, unchanged from its close Monday.<\/p>\n
The dollar had slid to an intraday low on the back of the high
\n22 percent overnight rupiah interest rate in the interbank money
\nmarket.<\/p>\n
The South Korean won led the advance in the region's foreign
\nexchange markets as the currency continued to find support from
\nforeign fund inflows and hopes of a U.S. economic recovery,
\ndealers said.<\/p>\n
The won received an additional boost from stop-loss dollar
\nsales by local banks, and market talk late in the session that
\nthe South Korean government may sell some dollar receipts from
\nthe sale of Korea Telecom American Depositary Receipts last week.<\/p>\n
The dollar finished at 1,292.3 won, down 1,301.0 won Monday.<\/p>\n
Expectations that the South Korean central bank would lower
\nits policy rate during its monthly meeting Thursday also
\nsupported the won, since it would help stimulate the country's
\neconomic growth, said Frank Gong, an economist at Bank of
\nAmerica.<\/p>\n
The Singapore dollar and the New Taiwan dollar also received a
\nfillip from the yen's rise and the encouraging U.S. economic
\ndata, dealers said.<\/p>\n
Against the Singapore dollar, the U.S. currency was at
\nS$1.8221, lower than S$1.8227 late Monday.<\/p>\n
The U.S. dollar closed at NT$34.394, lower than Monday's close
\nof NT$34.428, in dealings valued at US$351.5 million.<\/p>\n
The Thai baht and the Philippine peso were left out with
\nrespect to the region's gains.<\/p>\n
Comments by Thai central bank Governor Pridiyathorn Devakula
\nTuesday that the central bank would focus on keeping the baht in
\nline with a basket of currencies, which include Asian currencies
\nand those of Thailand's trade partners and competitors, prompted
\nthe market to push the baht lower.<\/p>\n
The Thai currency was at 45.450 baht against the dollar,
\nweaker compared with 45.325 baht late Monday.<\/p>\n
Corporate demand for dollars and domestic security anxieties
\ncontinued to weigh on the Philippine peso, dealers said.<\/p>\n
The dollar closed at 52.940 pesos, up from 52.700 pesos
\nMonday.<\/p>",
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