Led by rupiah, Asian monies mostly improve against dollar<\/p>\n
Shen Hong, Dow Jones, Singapore<\/p>\n
Led by the rupiah, Asian currencies were mostly higher against
\nthe U.S. dollar late Wednesday, recovering from the previous
\nday's jitters brought on by a bomb blast in the Indonesian
\ncapital.<\/p>\n
The dollar's slide against the Japanese yen and the threat of
\ncentral bank intervention also helped regional currencies,
\nnotably the Singapore dollar, move higher, observers said.<\/p>\n
\"The ability of Asian currencies to withstand such an event in
\nJakarta is a good thing,\" said Thio Chin Loo, a currency
\nstrategist at BNP Paribas in Singapore.<\/p>\n
However, Thio was quick to warn that the steadiness in
\nregional units Wednesday \"could be a bit artificial because
\ncentral banks are stepping up vigilance.\"<\/p>\n
Late in Asia, the dollar was quoted at Rp 8,608, down from Rp
\n8,625 Tuesday.<\/p>\n
Although Bank Indonesia has vowed to defend the currency
\nfollowing Tuesday's plunge on the terrorist bombing attack in
\nJakarta, some observers expect the rupiah to resume heading south
\nin the near future, particularly as political instability could
\nrise ahead of Indonesia's mid-2004 presidential election.<\/p>\n
The Singapore dollar also rebounded from a three-month low it
\nhit Tuesday, taking advantage of the spillover impact of a
\nstronger yen. The U.S. dollar was quoted at S$1.7622 late in the
\nsession, down from S$1.7640 Tuesday.<\/p>\n
The Thai baht, which tends to take its cue from its Singapore
\ncounterpart, was unchanged late in Asia, following a brief
\nrebound earlier Wednesday. The U.S. dollar was quoted flat at
\n42.07 baht, after dipping to an intraday low of 41.96 baht.<\/p>\n
The Philippine peso also reversed direction Tuesday,
\ncapitalizing on better corporate demand and fears of central bank
\nintervention.<\/p>\n
The dollar closed at 54.790 pesos on the Philippine Dealing
\nSystem, compared with 54.815 pesos Tuesday.<\/p>\n
In Northeast Asia, the South Korean won ended the day higher,
\nas foreign investors sold dollars to pay for local stock
\npurchases, but narrowed gains toward the close on suspected
\ngovernment intervention.<\/p>\n
The dollar closed at 1,184.6 won, down from 1,187.9 won
\nTuesday.<\/p>\n
Foreign investors were net buyers of 84.3 billion won worth of
\nKorean shares Monday and Tuesday, before turning net sellers
\nWednesday.<\/p>\n
Market participants also suspected the authorities stepped
\ninto the market right before the close to support the dollar. The
\nKorean authorities never specifically comment on their activities
\nin the market.<\/p>\n
Traders expect the dollar to trade between 1,183 won and 1,190
\nwon Thursday, with any downside limited by the government's clear
\naversion to a rising won as it tries to keep local exports
\ncompetitive.<\/p>\n
\"The market's consensus is that it will be difficult for the
\ndollar-won to fall below 1,180,\" said a trader at Korea Exchange
\nBank.<\/p>\n
In China, Premier Wen Jiabao's reaffirmation that the country
\nwould maintain the basic stability of the yuan exchange rate led
\nto a slide in the one-year yuan nondeliverable forward premium in
\nthe offshore market.<\/p>\n
Wen's remarks boosted investor confidence that China will
\ncontinue to resist pressure from its trading partners for a yuan
\nrevaluation in the short-to-medium term.<\/p>\n
The yen's strength against the U.S. currency also lifted the
\nNew Taiwan dollar, sparking a slew of dollar selling from
\nTaiwanese domestic banks.<\/p>\n
The U.S. dollar closed at NT$34.446, down from NT$34.466
\nTuesday.<\/p>\n
The Taiwanese currency often tracks the yen, because the
\nisland imports large amounts of goods from Japan and as the two
\ncompete in some export categories.<\/p>\n
The U.S. dollar is expected to remain steady Thursday between
\nNT$34.42 and NT$34.47, said a dealer at a foreign bank in Taipei.<\/p>",
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