Asian currencies fall against U.S. dollar

Asian currencies fall against U.S. dollar

SINGAPORE (Dow Jones): The Korean won continued to fall against the U.S. dollar during Asian trading hours Thursday, as continuing bad news battered the local stock market and raised concerns that hoped-for financial and corporate restructuring would not materialize.

Korea's Kospi index also fell below 900 points to 898 for the first time since July, following news that officials of the Hyundai Group were not allowed to leave the country until an investigation about potential stock manipulation was completed.

At 0800 GMT (4:00 a.m. EDT) the U.S. dollar was trading at 1190.7, up from 1184.70 late Wednesday. "The won still surprises me given the negative sentiment in the stock market and the negative noise about Daewoo and Hyundai," said the head trader of foreign exchange trading at a U.S. bank in Singapore.

In other Asian markets, the Thai baht, Singapore dollar, Philippine peso and Indonesian rupiah all fell against the U.S. dollar in quiet trade, dealers said.

The Thai baht also continued to slip against the U.S. dollar Thursday, after falling to an 11-month low Wednesday. While trading activity had been volatile and hectic Wednesday, Thursday's market remained subdued as traders tried to fathom the reason for the baht's sudden decline. At 0800 GMT (4:00 a.m. EDT), the U.S. dollar was trading at 38.8900, well up from 38.76 late Wednesday and above the 11-month high of 38.86 baht reached during intraday trading Wednesday.

On the Philippine dealing system, the U.S. dollar was also trading at 39.785 peso, just up from 39.775 peso late Wednesday.

Philippine Central Bank Governor Rafael Buenaventura said Thursday he sees no signs of undue pressure on the peso; the peso's weakness of late was due mainly to the fall in the Thai baht, which is closely watched in the Manila currency market because of the similarities of the Philippine and Thai economies.

The U.S. dollar was also trading at S$1.6832, up slightly from S$1.6821 late Wednesday. Traders said Singapore's currency was protected in part by its regional safe haven status, given the volatility of the Thai baht and Indonesian rupiah.

"The market is comfortable at these levels; when we start getting down toward S$1.68, traders look for signs of (Monetary Authority of Singapore) intervention," a trader at a U.K. bank in Singapore said.

The U.S. dollar was also trading at Rp 7,775, up a touch from Rp 7,707 Wednesday. Traders dismissed any thoughts that many investors were taking a punt on the outcome of the East Timor referendum, expected next week, or what would happen in the run- up to the November presidential elections.

"Check the wind direction; that will tell you the same thing, " said one trader. "Trading volumes are low and the prospects for volatility are high over the next week."

There are also further signs of economic distress in the country. A government official reported Thursday that non-oil and gas exports fell 13.8 percent in July, primarily on the back of a decline in the export of agricultural commodities. The government plans on releasing Indonesia's consumer price index Friday.

In Taiwan, the U.S. dollar was trading at NT$31.825, almost unchanged from NT$31.83 Thursday.