Most Asian currencies flat as rampant won extends rise<\/p>\n
SINGAPORE (Dow Jones): Asian currencies again took a back seat
\nto a rampant won in Asian trading Wednesday.<\/p>\n
The won extended its recent rises, jumping as much as 0.8
\npercent to its highest level since late June on more repatriation
\nof funds from a capital raising in the U.S., and on foreign
\npurchases of South Korean stocks due to the nation's strong
\neconomic outlook.<\/p>\n
However, the rest of the Asian currencies were barely changed
\nlate Wednesday from a day earlier.<\/p>\n
Although local South Korean stocks fell 0.5 percent, net
\npurchases of stocks by foreigners reached an estimated 62.1
\nbillion won on the day.<\/p>\n
Traders said both the repatriation of funds raised by a $180
\nmillion initial public offer of shares in Korea Thrunet (KOREA)
\nfor its listing earlier this month on Nasdaq, and expectations
\nthat Moody's Investors Service may further upgrade South Korea's
\nsovereign ratings soon, continued to help the won.<\/p>\n
The rapid rise of the won, its acceleration in each of the
\npast three trading sessions, and climbing bond yields are all
\ncausing official concern, and prompted intervention Wednesday in
\nthe foreign exchange and bond markets.<\/p>\n
State-run Korea Development Bank bought the U.S. currency in
\nits routine daily dollar-supportive action. The action helped the
\ndollar to bounce from an intraday low of 1,159.90 won, but
\nsentiment toward the won remains bullish.<\/p>\n
By the end of domestic trading Wednesday in South Korea, the
\nU.S. dollar had fallen to 1,163.00 won from 1,169.50 won at
\nTuesday's close.<\/p>\n
Elsewhere, the New Taiwan dollar was unmoved despite a 1.5
\npercent fall in the Taiwan Index of share prices on news the
\nMorgan Stanley Capital International will wait until May 2001 to
\ngive Taiwan a 100 percent weighting in two key MSCI market
\nindexes.<\/p>\n
At the end of domestic dealing in Taipei, the U.S. currency
\nwas quoted at NT$31.728 from NT$31.727 late Tuesday.<\/p>\n
In late Asian trading, the U.S. currency was at 38.6600 Thai
\nbaht, up slightly from 38.6350 baht in late the previous session.<\/p>\n
Traders said the minor weakness of the baht was unrelated to
\nthe long-expected filing of a censure motion against the
\ngovernment by the parliamentary opposition, and was rather due to
\na small outflow of capital.<\/p>\n
Debate of the censure motion likely won't take place until
\nmid-December, and the government is expected to survive.<\/p>\n
Meanwhile, the U.S. dollar is at Rp 7,100 late Wednesday, up
\nslightly from Rp 7,075 late Tuesday.<\/p>\n
Against the Singapore dollar, the U.S. unit was trading at
\nS$1.6680, down from S$1.6697 previously.<\/p>\n
And versus the Philippine peso, the U.S. currency ended at
\n40.640 pesos, unchanged from Tuesday's close.<\/p>",
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