Asian currencies mostly up, U.S. dollar takes battering<\/p>\n
Nirmala Menon, Dow Jones<\/p>\n
Most Asian currencies were higher Monday with several shooting
\nto new multi-month highs Monday as confidence in the U.S. dollar
\nwas hammered by a new string of accounting revelations from U.S.
\ncompanies, and after Japanese Finance Minister Masajuro
\nShiokawa's bearish remarks over the weekend.<\/p>\n
Only the Indonesian rupiah weakened against the U.S. dollar as
\ncentral bank purchases of the local currency couldn't offset
\ncorporate purchases of dollars to pay for imports. The Korean won
\nand the Thai baht both ended at multi-month highs, while the
\nPhilippine peso, Singapore dollar and New Taiwan dollar closed
\nhigher against the U.S. unit.<\/p>\n
\"People pretty much jumped on the sell dollar bandwagon,\" said
\nThio Chin Loo, senior currency analyst at BNP Paribas in
\nSingapore, adding that Shiokawa's remarks over the weekend \"isn't
\ngood for the (dollar's) outlook.\"<\/p>\n
At a weekend meeting of European and Asian finance chiefs in
\nCopenhagen, Shiokawa said officials in various countries believed
\nthe dollar was in a downtrend, and could fall to its post-Sept.
\n11 low of 115.80 yen.<\/p>\n
The greenback was dealt a further blow by more accounting-
\nrelated controversies at big U.S. companies, analysts and traders
\nsaid.<\/p>\n
Drug giant Merck & Co. said it recorded $12.4 billion in
\nrevenue from its pharmacy benefits unit over the past three years
\nthat it never actually collected. However, Merck said its
\nrevenue-recognition policy conforms to generally accepted
\naccounting principles and that it wouldn't affect its net income.<\/p>\n
That news came soon after energy firms Reliant Resources and
\nReliant Energy late Friday announced they had amended their
\nrevenues downward by more than a combined $15 billion.<\/p>\n
Analysts said the spate of accounting controversies has
\nfurther overshadowed the dollar's already week outlook.<\/p>\n
\"A lot hinges on the headline news on these issues. For now,
\nthe risk is to the downside on the U.S. dollar,\" said Thio.<\/p>\n
In Asian trading, the Singapore dollar rose in tandem with the
\nyen, and ahead of the release of advance estimates of second-
\nquarter gross domestic product data Wednesday.<\/p>\n
Late Monday, the U.S. dollar was quoted at S$1.7625, from
\nS$1.7721 late Friday.<\/p>\n
Against the baht, the dollar crashed to a 22-month low and was
\nquoted at 41.435 baht late Monday from 41.645 baht before.<\/p>\n
A lack of corporate demand for dollars coupled with the
\ngreenback's general weakness helped boost the Philipine peso. The
\ndollar ended at 50.470 pesos, from 50.595 pesos Friday.<\/p>\n
Meanwhile, the Korean won rode on the yen's rise to a 19-month
\nhigh against the dollar. The dollar ended at 1,191.4 won from
\n1,204.9 won Friday.<\/p>\n
The won strengthened despite another government warning
\nintended to dull the bullish won sentiment.<\/p>\n
Against the New Taiwan dollar, the greenback closed at
\nNT33.513, from NT33.580 Friday, even though the central bank
\nreportedly intervened to buy U.S. dollars intermittently.<\/p>\n
But the Indonesian rupiah bucked the regional trend and
\nweakened, despite intervention by Bank Indonesia.<\/p>\n
Traders said demand from importers surged, likely against any
\nrising political uncertainty ahead of the annual session of the
\ncountry's highest legislative body next month, and after weekend
\nviolence in troubled Aceh province.<\/p>\n
State oil company Pertamina was suspected of buying U.S.
\ndollars earlier in the day to finance the import of fuels.<\/p>\n
Late Monday, the dollar was quoted at Rp 8,900, from Rp 8,850
\nlate Friday.<\/p>",
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"sponsor": "Okusi Associates",
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