Asian currencies mixed in muted trading

Asian currencies mixed in muted trading

SINGAPORE (Dow Jones): Asian currencies were mixed in muted
trading Wednesday. With markets in Japan closed for the Golden
Week holiday, activity was influenced mostly by local and
technical factors.

Most currencies were range bound, except for the Indonesian
rupiah, which got a lift after Indonesian officials said they
were on the verge of signing a new agreement with the
International Monetary Fund (IMF). The letter of intent would
clear the way for the release of a US$400 million loan tranche
tied to the implementation of reforms sought by the IMF.

A meeting between Indonesian authorities and a visiting IMF
team should all but seal the deal, officials said Wednesday
afternoon.

The dollar was quoted at Rp 7,950 rupiah near the end of
trading Wednesday, down from Rp 8,045 late Tuesday. However, it
is unlikely the rupiah will rally much more in the near term as
the economic and political outlook for Indonesia is less than
certain, a trader at a foreign bank said.

"Corporate interests should come back in below the 7,950 level
and start buying dollars again," he said.

The New Taiwan dollar slipped following a drop in local share
prices. The Weighted Index of the Taiwan Stock Exchange fell 2.5
percent as Wall Street losses further damped already weak
sentiment locally.

Declines in the New Taiwan dollar were limited, however, after
the central bank sold about $150 million to support the local
currency.

By the close of dealing, the U.S. dollar was quoted at
NT$30.699, up from NT$30.675 late Tuesday.

The Singapore dollar edged lower as pressure continued to
build from an expected interest rate hike in the U.S. later this
month. But trading was light, with the currencies trading in a
range between S$1.7160 and S$1.7190.

U.S. dollar-buying by a local bank drove the currency to an
intraday high of S$1.7190 early in the session. The Singapore
currency rebounded on profit-taking, a dealer at a foreign bank
said, driving the U.S. dollar down to S$1.7160. The U.S. dollar
then resumed its upward trend to finish the day at S$1.7186, up
from S$1.7165 late Tuesday.

The Thai baht hit a 4-1/2-month-low of 38.455 baht to the
dollar early in the day as foreign investors bought U.S. dollars
to cover short positions. But the "bargain price" perked up
buying interest, dealers said, and the currency edged back up to
finish the day just shy of where it started.

At the close the dollar was quoted at 38.385 baht, compared
with 38.380 baht the previous day.

The South Korean won was unchanged as modest dollar-selling by
local exporters was offset by foreign banks covering short-dollar
positions late in the session. The dollar closed at 1,110.0 won,
unchanged from Tuesday.

The Philippine peso edged higher on a steady dollar inflow and
profit-taking by some banks, traders said.

The dollar closed at 41.270 pesos on the Philippine Dealing
System, down from Tuesday's close of 41.279 pesos.

Volume was a thin $84.37 million Wednesday compared with
$127.9 million Tuesday.