Asian currencies up late<\/p>\n
Netty Ismail, Dow Jones, Singapore<\/p>\n
Asian currencies remained caught in their updraft late
\nThursday, as the U.S. dollar continued to struggle in
\ninternational foreign exchange markets.<\/p>\n
The dollar - which has been tottering of late - received
\nanother blow after Federal Reserve Chairman Alan Greenspan warned
\nof continued uncertainty over the strength of the U.S. economic
\nrecovery, signaling it is likely to be several months before the
\ncentral bank raises rates from their current 40-year lows.<\/p>\n
With inflation pressures low, the Fed \"should have ample
\nopportunity to adjust policy to keep inflation pressures
\ncontained once sustained, solid, economic expansion is in view,\"
\nGreenspan said.<\/p>\n
Most observers now rule out a rate hike when the Fed meets May
\n7 and even during its next meeting in late June, instead betting
\non their August meeting as the starting point for reversing some
\nof last year's 11 rate cuts.<\/p>\n
At 0900 GMT (4 p.m. Jakarta time), the dollar was quoted at
\n130.50 yen, below 130.73 yen late Wednesday in New York and down
\nfrom 131.11 yen late Wednesday in Tokyo.<\/p>\n
With the seemingly meek attempt by Japanese authorities to
\ntalk up the dollar against the yen, the U.S. currency is expected
\nto spiral even lower toward 128 yen, said Ron Leven, a Tokyo-
\nbased strategist at Lehman Brothers.<\/p>\n
This will likely fuel further gains in other Asian currencies
\nin the near term, with the South Korean won and the Singapore
\ndollar expected to continue leading the advance, he added.<\/p>\n
The won closed at its strongest level in almost three months
\nagainst the dollar, as foreign investors continued to snap up
\nSouth Korean shares for a second day in a row and as the yen
\ngained ground.<\/p>\n
The dollar closed at 1,313.2 won, down from 1,318.7 won
\nWednesday.<\/p>\n
Foreign investors were net buyers of 185.8 billion won worth
\nof shares Thursday, helping to lift Seoul's benchmark stock index
\nby 0.8 percent to a 26-month closing high of 937.61.<\/p>\n
The Singapore dollar strengthened to as high as S$1.8235
\nagainst its U.S. counterpart in intraday trade, before retreating
\nto S$1.8257 at 0925 GMT (4.25 p.m. Jakarta time). Still, the
\nSingapore dollar was stronger than late Wednesday's level of
\nS$1.8288 to the U.S. dollar.<\/p>\n
Foreign equity inflows and the stronger yen helped prop up the
\nNew Taiwan dollar to its highest close in four months.<\/p>\n
The New Taiwan dollar ended at NT$34.940 against the U.S.
\ncurrency, compared with NT$34.963 Wednesday.<\/p>\n
Foreign institutional investors bought a net NT$10.1 billion
\nworth of shares on the Taiwan Stock Exchange Thursday, the
\nexchange said.<\/p>\n
The Thai currency was slightly stronger at 43.310 baht to the
\nU.S. dollar, compared with its opening level of 43.340 baht.
\nWednesday, the dollar traded between 43.320-43.360 baht.<\/p>\n
Remarks by the central bank Wednesday that it hadn't
\nintervened to curb the baht's recent strength emboldened
\nparticipants to push the currency higher, dealers said.<\/p>\n
\"If the central bank had kept quiet, the baht wouldn't be this
\nstrong,\" said a dealer at an Asian bank.<\/p>\n
Still, some dealers doubted the veracity of the central bank's
\nremarks, as the Bank of Thailand was spotted buying dollars
\nrecently - even on Wednesday, when the denial was made.<\/p>\n
Bolstered by its regional peers, the Philippine currency
\nstrengthened to 50.940 pesos to the U.S. dollar, compared with
\n51.005 pesos Wednesday.<\/p>\n
The Indonesian currency climbed to Rp 9,390 to the U.S.
\ndollar, from Rp 9,425 late Wednesday.<\/p>",
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