Asian currencies mixed against dollar

Asian currencies mixed against dollar

SINGAPORE (AFP): Asian currencies ended mixed Wednesday
against the U.S. dollar, which remained well bid with no
immediate signs of an end to the war in Yugoslavia, dealers said.

"The overall outlook is still a firm dollar," said Christy
Tan, analyst at Singapore-based financial consultancy IDEA.

The U.S. dollar was down in New York Tuesday against most
major currencies after the Yugoslav announcement of a unilateral
cease-fire, although NATO rejected it as "insufficient."

The greenback is regarded as a safe haven currency in times of
crisis.

A European bank dealer here said the yen closed Asian trading
lower at 120.85 against the U.S. dollar from the New York close
of 120.60. It had ended at 121.40 in Singapore a day earlier.
"We are seeing a tight range of 120.40 to 121.20," the dealer
said.

The Singapore dollar closed lower at 1.7365 against the
greenback from Tuesday's close of 1.7357 and the Taiwan dollar
eased to 33.133 from 33.12.

The Thai baht rose to 37.75 against the dollar from 37.88, the
Indonesian rupiah to 8,750 from 8,875 and the South Korean won to
1,222.5 from 1,225.

In London, the euro single currency fell against the dollar
early on Wednesday, after the NATO military alliance had rejected
ceasefire overtures from Belgrade and continued bombing of
Yugoslavia.

The pound, meanwhile, recovered from its lowest level against
the dollar for one and a half years.

The euro was being traded at 1.0784 dollars from 1.0814.

The dollar was being traded at 120.85 yen here from 121.05 yen
earlier in Tokyo and 120.83 yen here late on Tuesday.

Sterling rose back to 1.5935 dollars from 1.5894 late on
Tuesday.

The euro is likely to fall further against the dollar as the
European Central Bank is predicted to trim back interest rates in
the face of the economic slowdown in Germany and France.

A growing number of economists predicted that the Bank of
England would reduce its own base rate by a quarter point to 5.25
percent after its monthly monetary policy meeting on Thursday.

The pound bounced back against the dollar from low points on
Tuesday, in spite of the prospect of lower interest rates.

The dollar rose against the yen after Japan's vice finance
minister Eisuke Sakakibara warned once again against strength of
the Japanese unit.

The euro was being traded at 1.0784 dollars from 1.0814,
130.35 yen from 130.3, 0.6767 pounds from 0.6770 and 1.5953 Swiss
francs (1.5960).

The dollar was being traded at 120.85 yen from 120.83 and
1.4795 Swiss francs from 1.4753.

Sterling was being traded at 1.5935 dollars (1.5894), 192.60
yen (191.79), 2.3580 Swiss francs (2.3473).