Asian currencies mixed in late trade

Asian currencies mixed in late trade

SINGAPORE (Dow Jones): Asian currencies were mixed late Friday, with the beleaguered South Korean won and the New Taiwan dollar snapping out of their recent lows amid signs of easing domestic political tensions and strong gains on the local bourses, dealers said.

The Indonesian rupiah ended slightly weaker on Friday as local companies bought dollars to repay debt, traders said.

The dollar was traded in a narrow range ahead of the weekend and closed at Rp 9,455 in Asia, up from Rp 9,420 at Thursday's close, but down from an intraday high of Rp 9,465.

"Some big banks were buying dollars on behalf of corporate clients," a local dealer said.

The dollar's bullishness is also fueled by continued political protests for President Abdurrahman Wahid's resignation. The President is blamed for failing to clean up the country's economy.

Hundreds of protesters took to central Jakarta's streets late Friday chanting slogans against the embattled president.

Despite the rebound of these two Northeast Asian currencies, dealers and analysts, who have recently turned increasingly bearish toward these units, won't be easily swayed.

The dollar finished at 1,188.10 won, down from Thursday's close of 1,193 won.

Still, analysts and dealers said the won could resume its downtrend early next week, and make another stab at the 1,200 won level against the dollar.

"The won remains vulnerable, given the backdrop of corporate and financial restructuring uncertainties and heavy dollar buying from oil importers," Standard Chartered Bank said in a report.

The New Taiwan dollar edged up on the sharp rise on the Taipei bourse and the legislature's approval of a long-delayed financial industry merger law, which could mean that political bickering has eased, dealers said.

The passage of Taiwan legislation has been hampered in recent months by wrangling between government and opposition-dominated legislature.

The U.S. dollar slipped to NT32.874 from Thursday's close of NT32.931.

Standard Chartered Bank has raised its six-month U.S. dollar forecast to NT$35.00 from NT$33.90.

Taiwan's balance of payments deficit for October "has not helped" and the local central bank has allowed the New Taiwan dollar to fall this week, although it should draw a line in the sand around NT$33 in the near term, the bank said.

In Manila, fears that moves by President Joseph Estrada's lawyers to dismiss the impeachment case against the embattled leader could lead to a protracted political crisis bruised the Philippine peso, dealers said.

The dollar closed at 49.390 pesos on the Philippine Dealing System, up from Thursday's close of 49.380 pesos.

An offshore liquidity squeeze continued to support the Thai baht, dealers said.

Around 1000 GMT, the dollar was at 43.795 baht, down from 43.855 baht late Thursday.

Against the Singapore dollar, the U.S. currency rose to S$1.7592, from S$1.7548 late Thursday, thanks to the yen's weakness.

The U.S. dollar faces psychological resistance around S$1.7600, amid fears that the Monetary Authority of Singapore might defend the local currency around that level.

But BNP Paribas currency strategist Thio Chin Loo said MAS might tolerate the Singapore dollar's decline, which has been slow recently despite the weakness in the yen, the euro and other Asian currencies.