Asian currencies finish mixed
Asian currencies finish mixed
SINGAPORE (Dow Jones): Asian currencies were mixed late Friday, with the South Korean won battered by renewed concerns over the extent of the economy's dependence on the country's chaebols, dealers said.
News of the financial woes of the Hyundai Group, the country's leading conglomerate, rattled Seoul financial markets.
The dollar finished at 1,136.50 won, up from Thursday's close of 1,129.90 won.
The benchmark stock index on the Korea Stock Exchange plunged 6.1 percent to 656.66 Friday, its lowest level since April 17, 1999.
Korea Exchange Bank said early Friday it was extending an emergency 50 billion won loan to Hyundai Group. The conglomerate said it would provide some of the funds to Hyundai Engineering & Construction Co., South Korea's largest construction company.
Investors fear the Hyundai Group's financial problems may be worse than expected, despite assurances from its major creditor bank and the government the liquidity problem at Hyundai Engineering & Construction was temporary and that Hyundai Group's other units don't have liquidity problems.
In the Philippines, the floundering currency found some respite against the dollar from the prospect of peace talks with Muslim separatists in Mindanao and liquidation of long-dollar positions by banks, as demand for the U.S. currency dwindles.
The dollar closed at 42.720 pesos on the Philippine Dealing System, down from 43.400 pesos.
Social unrest in Jakarta prompted offshore players to bail out of the Indonesian rupiah.
Students set police and military vehicles on fire near the home of ex-President Suharto, following repeated protests this week urging the government to arrest and try Suharto for corruption.
The dollar was at Rp 8,503 late Friday, up from Rp 8,450 late Thursday, after peaking at Rp 8,565 midday on reports of the unrest.
Further anti-Suharto protests are expected over the weekend and may put the rupiah under more pressure Monday, traders said. Corporate dollar demand remains strong, keeping the U.S. unit well bid above Rp 8,400, they added.
Looking further ahead, the dollar could strengthen to Rp 9,000 in the coming month, "assuming the dollar doesn't collapse across the board overnight," said Standard Chartered Bank Treasury Economist Philip Wee.
"As long as it stays above Rp 8,200, we're still bullish on the dollar versus the rupiah," Wee added.
Elsewhere, the New Taiwan dollar closed higher as a 1.4 percent rally in the local stock market eased the downward pressure on the local currency, dealers said.
The U.S. dollar finished lower at NT$30.808, from Thursday's close of NT$30.813.
Against the Thai currency, the dollar was at 39.070 baht, barely changed from 39.075 baht late Thursday.
Most Asian currencies will likely continue to trade within their recent range, with the U.S. stock market expected to dictate their direction next week, as it had over the past week, analysts said.
The Philippine, Indonesian and Thai currencies will continue to be "the most vulnerable to any increase in risk aversion on the part of investors" as capital inflows into these countries are the weakest, Low at Merrill Lynch said.