Most Asian currencies firm<\/p>\n
SINGAPORE (Reuters): Most Asian currencies remained firm but
\nwere off their highs in late yesterday trade as the Singapore
\ndollar subsided after the country's 1998 budget failed to deliver
\nany major tax cuts.<\/p>\n
But traders were reluctant to commit themselves aggressively
\ndue to possible weekend developments, including an ASEAN finance
\nministers meeting in Jakarta expected to address the proposal of
\nusing regional currencies for intra-ASEAN trade.<\/p>\n
\"We could see totally different levels when we come in on
\nMonday so I don't think people want to carry positions over the
\nweekend,\" a U.S. bank dealer in Singapore said.<\/p>\n
The U.S. dollar's decline against the yen and gains in several
\nAsian stock markets following Wall Street's bullish performance
\nhelped regional currencies stay on positive ground.<\/p>\n
The Singapore dollar slipped back through the 1.62 level to
\nthe U.S. dollar in thin overseas markets as Finance Minister
\nRichard Hu concluded his budget speech without any mention of a
\nwidely-sought corporate tax cut.<\/p>\n
The Singapore dollar reached early highs of 1.6100\/10 to the
\nU.S. dollar on stop-loss U.S. dollar sales sparked by
\nexpectations of a pro-business budget.<\/p>\n
It was also lifted by Deputy Prime Minister Lee Hsien Loong's
\ncomment that the Monetary Authority of Singapore (MAS) would
\nmaintain confidence in the domestic dollar by intervening in
\nforeign exchange markets when necessary.<\/p>\n
Lee told parliament fears of a sharp fall in the rupiah
\ndragging down the Singapore dollar were hypothetical at this
\nstage and \"the weight of the rupiah in our basket is small\".<\/p>\n
Talk of MAS intervention kept the Singapore dollar from
\nstrengthening through the 1.61 level in early trade, but dealers
\nsaid it was likely to target the 1.60 level soon.<\/p>\n
The Malaysian ringgit tracked its neighbor's moves,
\nbenefiting further from gains in Kuala Lumpur stocks and news the
\ngovernment was raising the ceiling on foreign share ownership in
\ntelecommunications companies.<\/p>\n
The Indonesian rupiah rose through the 9,000 per dollar level
\non U.S. dollar sales by U.S. investment houses in the wake of the
\nSingapore dollar's early rise.<\/p>\n
But dealers said worries about unrest ahead of the
\npresidential elections and uncertainty over Indonesia's plans to
\nstabilize its rupiah via a currency board system would limit
\ngains to the 8,500 level.<\/p>\n
The Thai baht made way for investor and corporate dollar
\ndemand after failing to firm above the 42.50 per dollar level.<\/p>\n
Dealers said the market was largely unmoved by economic data
\nshowing a $1.03 billion trade surplus and a $1.18 billion current
\naccount surplus for December.<\/p>\n
The Philippine peso firmed with its regional counterparts and
\nas foreign funds flowed into stock and fixed income markets. The
\ncentral bank said it was planning to cut banks' reserve
\nrequirements by three percentage points and raise liquidity
\nreserves by the same amount to nudge bank lending rates lower.<\/p>\n
In north Asia, the Taiwan dollar ended firm on the yen's
\nstrength and confidence over the appointment of new central bank
\ngovernor Perng Nai-fan, known for his tough stance against
\nspeculators.<\/p>\n
The South Korean won finished above the psychological 1,645
\nlevel to the dollar on month-end export deals and a surging stock
\nmarket.<\/p>\n
The Hong Kong dollar was firm while forwards rebounded after
\nthe Hong Kong banks' association left deposit rates unchanged at
\nits weekly review meeting.<\/p>\n
The Hong Kong Monetary Authority (HKMA) was heard offering
\nlonger-dated funds on Friday, though it said it had not been
\ninterfering in money markets to add liquidity and push down
\ninterest rates.<\/p>",
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