Most Asian currencies fell in late trade<\/p>\n
SINGAPORE (Dow Jones): Most Asian currencies came under
\nrenewed pressure late Wednesday as many regional bourses felt the
\npain from Wall Street's disappointment over the Federal Reserve's
\ninterest rate cut, and as the Japanese yen resumed its descent.<\/p>\n
The only currency that avoided getting sucked into the
\ndowndraft was the Indonesian rupiah, which was steady as local
\ncorporates held back their dollar demand and amid fears of
\ncentral bank intervention, dealers said.<\/p>\n
The Indonesian currency was around 10,420 rupiah to the
\ndollar, unchanged from Tuesday.<\/p>\n
The Fed's move Tuesday to lower short-term interest rates by
\nhalf a percentage point brings rates down a total of 1.5
\npercentage points this year. And officials made clear they are
\nprepared to do much more - possibly even before their next
\nofficial rate-setting session May 15.<\/p>\n
With many investors hoping for a three-quarter point cut,
\nstocks plunged following the Fed's announcement. The Dow Jones
\nIndustrial Average ended the day down 238.35 points, or 2.4
\npercent, to 9720.76, its lowest close since March 1999.<\/p>\n
\"The Fed still expects excess capacity to last for 'some
\ntime,' although the inventory adjustment appears well underway,\"
\nsaid DBS market strategist Philip Wee.<\/p>\n
For the region's economies, which rely heavily on exports to
\nthe U.S., \"easier monetary policy is unlikely to be of much help
\nin supporting growth even if Asian central banks can respond with
\nlower rates,\" Wee said.<\/p>\n
Foreign exchange participants, who had unwound their dollar
\npositions Tuesday to lock in profits, revived their dollar buying
\nspree Wednesday in most Asian currency markets, dealers said.<\/p>\n
The currencies also felt another blow from the Japanese yen's
\nretreat below Y123 against the dollar, following its rebound
\nearlier this week.<\/p>\n
\"Asian currencies began rallying yesterday in anticipation of
\na Fed cut, but any rally in Asia will be shallow or short-lived
\nwithout a rally in the yen,\" said Peter Redward, a regional
\ncurrency strategist at Deutsche Bank.<\/p>\n
The currencies of South Korea and Taiwan - both of which
\ncompete against Japan in similar export markets - felt the brunt
\nof the region's pressure.<\/p>\n
The dollar ended at 1,305.3 won, up from 1,295.90 won Tuesday.<\/p>\n
The New Taiwan dollar's fall to as low as NT$32.880 against
\nits U.S. counterpart heightened expectations of an imminent
\ndescent toward the NT$33 level.<\/p>\n
The New Taiwan dollar, however, regained its footing toward
\nthe close of trading as the local central bank came to its
\ndefense, selling US$150 million in the market, dealers said.<\/p>\n
The New Taiwan dollar ended at NT32.771 to the U.S. currency,
\nfrom NT32.775 Tuesday.<\/p>\n
The Singapore dollar's fall accelerated late in the day,
\nbreaking below S$1.7800 support for the first time since August
\n1998, as several foreign banks bid up the U.S. currency, dealers
\nsaid.<\/p>\n
With local banks not offering to sell U.S. dollars Wednesday,
\nthe market interpreted this to mean that the Monetary Authority
\nof Singapore would tolerate a further weakening of the local
\ncurrency with the slump in regional foreign exchange markets,
\ndealers said.<\/p>\n
\"Since the MAS didn't make any attempt to prop up the
\nSingapore dollar, they pushed the U.S. dollar higher,\" said a
\ndealer.<\/p>\n
The U.S. dollar was at S$1.7802, up from S$1.7722 late
\nTuesday.<\/p>\n
In the Thai currency market, the dollar was at 44.165 baht, up
\nfrom 43.965 baht late Tuesday.<\/p>\n
On the Philippine Dealing System, the dollar closed higher at
\n48.633 pesos, compared with 48.44 pesos Tuesday.<\/p>",
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