Asian currencies down, rupiah leads fall

Asian currencies down, rupiah leads fall

Irene Kwek, Dow Jones, Singapore

SINGAPORE (Dow Jones): Most Asian currencies were lower
Monday, with the rupiah diving amid concerns that a series of air
strikes against military installations in Afghanistan could spark
further anti-U.S. protests in Indonesia, the world's most
populous Muslim nation.

Elsewhere in the region, the reaction in foreign exchange
markets was somewhat subdued, as a holiday in Tokyo sapped
volume. Bucking the trend, the New Taiwan dollar and the South
Korean won ended slightly higher as local players reduced their
positions in the U.S. currency.

Fears that the conflict could escalate prompted a wave of
safe-haven flows into the Swiss franc Monday - and a flight out
of currencies seen most vulnerable to heightened tension, such as
the rupiah.

The U.S. currency finished higher against the Singapore
dollar, rising to S$1.7939 from S$1.7838 late Friday. The dollar
rose as high as S$1.7960, a two-month high, before drifting back
down.

In the next few sessions, the U.S. currency will likely be
supported at S$1.7880 and face key resistance at S$1.8000,
traders said.

In the Philippines, the peso closed slightly lower in range-
bound trade, with the dollar closing at its intraday high of
51.600 pesos, compared with 51.565 pesos Friday.

After the close of trading, the central bank governor, Rafael
Buenaventura, denied rumors in the market that the bank had
intervened in support of the peso. Buenaventura also expressed
hope that the peso wouldn't be hurt by news of several bombings
in the southern part of the country early Monday.

In Bangkok, the dollar was at 44.800 baht late Monday, up from
44.705 baht, buoyed by its gains against other regional
currencies. Traders said resistance was pegged at 44.850 baht.

The New Taiwan dollar ended slightly higher at NT$34.557 to
the dollar, compared with NT$34.559, in light trade, as many
players retreated to the sidelines due to increased uncertainty.

In contrast to Indonesia, the Taiwanese central bank had to
intervene Monday to prevent the local currency from strengthening
too quickly, purchasing around US$100 million in exchange for New
Taiwan dollars, traders said.

Meantime, the South Korean won finished slightly stronger, as
the dollar dipped to 1,311.6 won from 1,312.2 won.