Asian monies mixed late, peso succumbs to pressure<\/p>\n
By Alan Yonan Jr., Dow Jones, Singapore<\/p>\n
The Philippine peso's early rally was cut short on lingering
\nsecurity concerns Tuesday, while it was a mixed performance for
\nother regional currencies in Asian trading.<\/p>\n
The peso opened the session stronger, extending its gains from
\nMonday afternoon as it defied negative market sentiment stemming
\nfrom a series of deadly bomb blasts in the Philippines over the
\npast week.<\/p>\n
Some traders suspected the Philippine authorities may have
\nintervened in the market to bolster the local currency, but
\ncentral bank Governor Rafael Buenaventura said that wasn't the
\ncase.<\/p>\n
\"We remain cautious on the peso and maintain our buy-on-dips
\nrecommendation for the dollar against the peso,\" Bank of America
\nsaid in a note to clients.<\/p>\n
The dollar closed at 53.240 peso on the Philippine Dealing
\nSystem, up from 53.205 peso late Monday.<\/p>\n
Barclays Capital, meanwhile, said it was \"not yet ready to
\nturn bearish on the peso.\"<\/p>\n
President Gloria Macapagal Arroyo's government has
\ndistinguished itself from Indonesia in that it has been an
\n\"implacable\" opponent of domestic terrorism, Barclays said.<\/p>\n
In addition, maintaining a stable currency is one of the
\nPhilippine central bank's primary policy objectives, Barclays
\nadded.<\/p>\n
Further, the high implied yields in the market for non-
\ndeliverable forwards provide a degree of protection for long-peso
\npositions, and argue for a stabilization of the currency in
\ncoming sessions, Barclays said.<\/p>\n
The New Taiwan dollar gave up its early gains to finish
\nweaker. The U.S. dollar closed at NT$34.926, up from NT$34.895
\nMonday.<\/p>\n
Overseas U.S. dollar selling and fund inflows to the local
\nstock market initially boosted the local currency. However,
\ninterest in the New Taiwan dollar waned as the stock market
\nreversed course later in the day.<\/p>\n
The Singapore dollar tracked the yen lower in light trade.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1.7855, up from
\nS$1.7803 late Monday.<\/p>\n
Against the yen, the dollar was quoted at 125.30 yen near the
\nend of Asian trading, up from 124.87 yen late Monday in New York.<\/p>\n
The South Korean won was little changed as equity linked
\ndollar sales offset the yen's drag on the local currency.<\/p>\n
The dollar ended at 1,243.5 won compared with Monday's close
\nof 1,243.4 won.<\/p>\n
Foreign investors sold dollars to settle trades after snapping
\nup more than a net 500 billion won worth of shares Monday and
\nFriday.<\/p>\n
The Indonesian rupiah strengthened amid a shortage of funds in
\nthe interbank market and some dollar selling on behalf of the
\ncentral bank, traders said.<\/p>\n
The dollar ended Asian trading at its intraday high of Rp
\n9,190, down slightly from Rp 9,200 at Monday's close.<\/p>\n
With little news to trade on in the Thai market, the baht
\nfollowed the lead of the yen and the Singapore dollar.<\/p>\n
Near the end of Asian trading the dollar was quoted at 43.650
\nbaht, up from 43.570 baht late Monday.<\/p>\n
Traders said the baht was also pressured by importers buying
\ndollars ahead of a market-closing holiday Wednesday.<\/p>",
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