Asian monies up, rupiah strengthens<\/p>\n
Netty Ismail, Dow Jones, Singapore<\/p>\n
Continuing foreign equity inflows into local stock markets and
\nthe yen's gains bolstered most Asian currencies late Wednesday,
\ndealers said.<\/p>\n
The Indonesian rupiah's new found strength provided additional
\nsupport to its Southeast Asian peers, although fears of
\nintervention by the central banks in Singapore and Thailand
\nstymied their currencies' rise.<\/p>\n
The rupiah extended its climb toward Rp 9,900 resistance, as
\ninterbank participants continued to sell U.S. dollars in
\nanticipation of inflows from the Indonesian government's
\nimpending sale of its 51 percent stake in PT Bank Central Asia,
\nobservers said.<\/p>\n
The rupiah, trading at near five-month highs, hit an intraday
\nhigh of Rp 9,915 before retreating to around Rp 9,950 late
\nWednesday. The rupiah was weaker at Rp 9,980 late Tuesday.<\/p>\n
Improving prospects for the privatization of state-held assets
\nin Indonesia - which would underscore the government's commitment
\nto economic reforms - helped thrust the rupiah through the
\npsychologically important Rp 10,000 threshold Tuesday.<\/p>\n
\"With corporate bids for debt repayment still much on the
\nsidelines, the rupiah looks well positioned to test Rp 9,800,\"
\nBank of America said in a research report.<\/p>\n
The Thai currency strengthened to an intraday high of 43.490
\nbaht to the dollar, thanks to strong foreign equity inflows and
\ndollar sales by U.S. funds - as they simultaneously unloaded
\ntheir dollar positions against the yen, dealers said.<\/p>\n
But the baht subsequently pulled back past the 43.500 bath
\nlevel on market suspicions that the Thai central bank had bought
\ndollars via two of its agent banks based in Singapore to check
\nthe baht's advance, market observers said.<\/p>\n
At 0915 GMT (4:15 p.m Jakarta time), the dollar was at 43.515
\nbath, lower than 43.665 bath late Tuesday.<\/p>\n
Against the Japanese currency, the dollar was quoted at 131.84
\nyen, below 132.13 yen in New York and 132.53 yen in Tokyo late
\nTuesday.<\/p>\n
Market speculation that the Monetary Authority of Singapore
\nhad intervened to check the strength of the local currency
\nWednesday provided a floor for the U.S. dollar around S$1.8250,
\nobservers said.<\/p>\n
The U.S. dollar slid to an overnight low of S$1.8222 on long-
\nliquidation, but subsequently bounced back on suspected
\nintervention by the MAS, some dealers said.<\/p>\n
A large Singapore bank bought a \"significant amount\" of U.S.
\ndollars around S$1.8260 during the Asian session Wednesday,
\nmoderating the upward pressure on the Singapore currency despite
\nthe firmer yen and local stock market gains, said a dealer at a
\nEuropean bank.<\/p>\n
Although some dealers said the Singapore bank was buying U.S.
\ndollars on behalf of its corporate clients, jitters about central
\nbank intervention led some to speculate that the Singapore bank
\nwas acting at the behest of the central bank.<\/p>\n
The South Korean won closed at 1,316.3 won against the dollar,
\nlittle changed compared with 1,316.4 won Tuesday.<\/p>\n
The won strengthened to an intraday high of 1,313.7 won
\nearlier, before retreating as foreign investors turned net
\nsellers of South Korean shares and onshore demand for dollars
\nemerged when the U.S. currency traded below 1,315 won support,
\nsaid Mansoor Mohi-uddin, a regional currency strategist at UBS
\nWarburg.<\/p>\n
State-run banks, like Korea Development Bank, or KDB, were
\nsnapping up dollars on behalf of corporations and oil importers,
\nsaid a dealer at a European bank in Singapore.<\/p>\n
Some market participants also believe that South Korea's
\ncentral bank had intervened through KDB, he added.<\/p>\n
Expectations that the yen will remain rangebound - as foreign
\nexchange participants attempt to defend their currency options
\npositions - also limited the won's upside, said Mohi-uddin.<\/p>\n
\"External factors are not that bullish for the won,\" said
\nMohi-uddin.<\/p>\n
The New Taiwan dollar closed stronger on foreign equity
\ninflows, but was off its intraday high as the central bank
\nintervened to curb the local currency's appreciation, dealers
\nsaid.<\/p>\n
A Taipei-based dealer estimated that the central bank
\naccounted for about half of Wednesday's turnover.<\/p>\n
The U.S. dollar ended at NT$35.030, slightly lower than
\nNT$35.069 Tuesday. The New Taiwan dollar hit an intraday high of
\nNT$34.995 Wednesday.<\/p>\n
Trading volume was US$602 million, higher than US$458 million
\nTuesday.<\/p>\n
Buoyed by its regional counterparts, the Philippine peso
\nclosed at 51.090 peso to the dollar, compared with 51.160 peso
\nTuesday.<\/p>",
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