Asian monies up, won at record high<\/p>\n
Dow Jones, Singapore<\/p>\n
Asian currencies kicked off the week on a stronger note on
\nrenewed U.S. dollar weakness on Monday, but gains were tempered
\nby concerns of central bank intervention.<\/p>\n
Central banks are reluctant to let their currencies appreciate
\ntoo much for fear of eroding export competitiveness in an
\nuncertain global environment.<\/p>\n
The dollar weakness came after weak University of Michigan
\nconsumer confidence figures on Friday raised doubts about the
\nstrength of the U.S. economy going forward.<\/p>\n
Monday's broad trend is likely to continue for the rest of the
\nweek as the dollar softens ahead of an expected U.S. interest
\nrate cut next week, and as Asian stock markets continue to put up
\na strong showing, Bank of America said.<\/p>\n
Also, renewed expectations that China will revalue the yuan
\n\"could arouse speculation that such a revaluation could be the
\ndecisive factor in making Asian central banks more permissive of
\nlocal currency appreciation,\" the bank said.<\/p>\n
Talk of a yuan revaluation has revived in recent days -
\nsparked off by research reports and also China's rising foreign
\nexchange reserves - but hasn't been priced in by Asian currency
\nmarkets, analysts said.<\/p>\n
China's pegged currency regime, which gives it an advantage in
\nthe export market at a time when the dollar is weak, \"remains an
\ninfluence on policy\" in the region, said David Simmonds, senior
\nemerging markets strategist for Asia at Royal Bank of Scotland.<\/p>\n
The South Korean won came off its intraday peak on suspected
\ndollar buying by the government, but still finished at a three-
\nand-a-half month high.<\/p>\n
The dollar closed at 1,190.3 won, down from 1,191.9 won on
\nFriday.<\/p>\n
The dollar briefly drifted below support at 1,190 won early in
\nthe session, but then pulled back on buying by state-run banks,
\nbelieved to be on behalf of the government, market players said.<\/p>\n
\"I think the authorities didn't buy a lot. It was just enough
\nto give a signal to the market,\" said a Seoul-based trader.<\/p>\n
Anticipation of further such intervention prevented investors
\nfrom selling dollars aggressively most of the day, but near the
\nend of trading, won buying by foreign funds to settle recent
\nshare purchases pressured the dollar to near 1,190 won, dealers
\nsaid.<\/p>\n
The U.S. unit's weakness, coupled with foreign buying of local
\nshares, drove the New Taiwan dollar to its strongest close in
\nover three months, dealers said.<\/p>\n
Overseas investors were net buyers of NT$1.32 billion in local
\nshares on Monday, according to the Taiwan Stock Exchange.<\/p>\n
The U.S. dollar ended at NT$34.599, down from NT$34.645
\nFriday.<\/p>\n
The Philippine peso was buoyed by foreign fund inflows to the
\nlocal stock market, remittances built up over the long weekend,
\nand also a lower-than-targeted budget deficit last month, traders
\nsaid.<\/p>\n
The dollar finished at an intraday low of 53.40 pesos on the
\nPhilippine Dealing System, down from 53.61 pesos on Thursday.
\nPhilippine markets were closed for a holiday on Friday.<\/p>\n
The government said after the market close on Thursday that
\nits deficit in May stood at 13.4 billion pesos, below its 20-
\nbillion pesos ceiling. The government also had a lower-than-
\ntarget deficit in April.<\/p>\n
The Indonesian rupiah was also boosted by continued capital
\ninflows from offshore, attracted by high yielding local assets,
\ndealers said.<\/p>\n
The dollar closed local trading at 8,205 rupiah, down from Rp
\n8,230 on Friday.<\/p>\n
A slew of local companies are currently offering bonds, with
\ncoupons of between 12.75 percent and 14.25 percent, among the
\nhighest yields in the region.<\/p>\n
Dealers said speculators are also betting that an impending
\ninitial public offering of shares in state-owned Bank Mandiri
\nwill attract foreign investor interest.<\/p>\n
The Thai baht was up on broad U.S. dollar weakness. News of
\nfaster-than-expected economic growth in the first quarter didn't
\ncreate any waves in the market as the data was as expected.<\/p>\n
The dollar closed the local session at 41.56 baht, down from
\n41.60 baht on Friday.<\/p>",
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