Most Asian monies hit multi-week highs<\/p>\n
Nirmala Menon, Dow Jones, Singapore<\/p>\n
Most Asian currencies hit multi-week highs as the U.S. dollar
\nfell to a fresh one-month trough against the yen Tuesday, ahead
\nof a widely expected rate cut by the U.S. Federal Reserve.<\/p>\n
The Singapore dollar, Thai baht, South Korean won and New
\nTaiwan dollar all rose to levels not seen since mid-to-late
\nSeptember.<\/p>\n
The Philippine peso chalked up gains for the third consecutive
\nsession, while the Indonesian rupiah was steady.<\/p>\n
The dollar tumbled roughly half a yen early in Asia amid
\ngrowing skepticism that a rate but by the Fed, which meets
\nWednesday, would give a much needed lift to the U.S. economy,
\nespecially with uncertainties such as the possibility of a war
\nwith Iraq still hanging in the air. Market players are betting
\nthe Fed will lower rates by 25 basis points.<\/p>\n
Meantime, market watchers were divided over the likely impact
\non the dollar of another major U.S. event - mid-term elections
\nset for later Tuesday. However, analysts said the impact of the
\nelections would be small regardless of the outcome.<\/p>\n
\"The year-end FX (foreign exchange) strategy is starting to
\nlook like a game of musical chairs that entails shorting the
\ncurrency of the country that is going to ease next,\" after the
\nBank of Japan recently eased monetary policy, wrote Singapore's
\nDBS Bank market strategist Philip Wee in a note Tuesday.<\/p>\n
BNP Paribas said the dollar's softness at a time when share
\nprices are recovering underscores the firm's views on the drivers
\nof regional units this year.<\/p>\n
Asian currencies \"tend to do well in an environment of risk
\nappetites, where the stock market is a proxy. This comes about as
\ninvestors take a more sanguine view of financial risks and put
\ntheir money to work in markets outside of the U.S.,\" BNP Paribas
\nsaid.<\/p>\n
\"The presumption therefore is of a reversal of capital flight
\nout of Asian countries, including Singapore, which benefits local
\ncurrencies,\" it added.<\/p>\n
The U.S. dollar ended at 1,217.0 won - its weakest close since
\nSept. 19 - and down from 1,219.0 won Monday. Intraday, it traded
\nbetween 1,214.0 won and 1,219.5 won.<\/p>\n
The won was buoyed by the stronger yen, and also dollar
\nselling by offshore players, traders said.<\/p>\n
The New Taiwan dollar also took heart from the yen's strength,
\nwith the U.S. unit closing at NT$34.625, down from Monday's
\nNT$34.698, and its lowest since Sept. 19. The U.S. dollar traded
\nbetween NT$34.600 and NT$34.700.<\/p>\n
Against the Singapore dollar, the U.S. currency was quoted
\naround S$1.7563 late in Asia, down from S$1.7672 late Friday.
\nFinancial markets in Singapore were closed for a holiday Monday.<\/p>\n
In Thailand, the dollar closed at 43.19 baht, down from 43.24
\nbaht Monday.<\/p>\n
Elsewhere, the dollar ended at 52.835 pesos on the Philippine
\nDealing System, down from 53.010 pesos at the previous close,
\nafter trading between 52.800 pesos and 52.985 pesos.<\/p>\n
The Indonesian rupiah was flat against the dollar, which
\nclosed at Rp 9,215, just off its intraday low of Rp 9,210.<\/p>\n
Jakarta suffered another shock Tuesday with the evacuation of
\nthe United Nations building after an anonymous bomb threat.
\nPolice found no bomb, but the capital remains on high alert after
\na bomb killed more than 180 mainly Western tourists on the island
\nof Bali last month.<\/p>\n
Market players continue to keep to the sidelines as they wait
\nand see if the government could crack down on terrorism.<\/p>",
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