Asian currencies mixed late; little direction from yen

Asian currencies mixed late; little direction from yen

SINGAPORE (Dow Jones): Asian currencies were mixed late
Tuesday having traded within tight trading bands, as the yen's
range-bound movements provided little direction for the market,
dealers said.

The Singapore dollar, the New Taiwan dollar, and the Thai baht
were marginally higher. The Indonesian rupiah was steady, while
the South Korean won and the Philippine peso were slightly lower.

"There's hardly any lead, even from dollar-yen," said a senior
dealer at a European bank.

The Indonesian currency was unchanged from late Monday at Rp
10,950 against the dollar, although investors remained wary of
the domestic political imbroglio.

Indonesia's President Abdurrahman Wahid met with his popular
deputy and senior ministers Tuesday, but failed to ease tensions
resulting from Indonesia's protracted political crisis.

Top security minister Susilo Bambang Yudhoyono wouldn't gave
details about the talks, but said Wahid called on Vice President
Megawati Sukarnoputri and seven members of his Cabinet to hold
more talks.

Rivalry between Wahid and Megawati has intensified since
parliament last week opened the door to possible impeachment by
censuring the head of state over allegations of corruption and
incompetence.

While the recent election of Japanese Prime Minister Junichiro
Koizumi has fanned hopes for structural reforms, the dollar has
been unable to break below the Y121 level convincingly. The yen
has been range-bound as market participants wait to see if
Koizumi will deliver his promises for reform.

At 0840 GMT (3:40 p.m. Jakarta time), the dollar was at
Y121.59, above Y121.10 late Monday in New York. The dollar was at
Y121.70 late Monday in Tokyo.

The Singapore dollar is slightly firmer late Tuesday, after
the Monetary Authority of Singapore was suspected to have
defended the currency - through a local bank - when it floundered
to as low as S$1.8265 against the U.S. dollar in early trade,
dealers said.

But corporate demand for U.S. dollars remained insatiable as
companies seek to fund their overseas acquisitions, dealers said.

Late Tuesday, the U.S. dollar was at S$1.8238, below S$1.8255
late Monday.

The Taiwanese central bank also intervened in the market
Tuesday, buying around US$50 million throughout the day to slow
the appreciation of the local currency, which had strengthened on
foreign equity fund inflows, dealers said.

Taiwan needs to maintain the price-competitiveness of its
exports, which fell a steeper-than-expected 11.3 percent on year
to US$10.87 billion in April. Analysts had expected a decline of
8.2 percent.

The U.S. dollar closed at NT$32.875, down slightly from
Monday's close of NT$32.879, in dealings valued at US$230
million.

The yen's slight decline late in the day to the weaker end of
its trading range dragged the South Korean won lower, although
dollar sales, mostly by local exporters, kept a rein on the won's
losses, dealers said.

The dollar ended at 1,300.50 won, up from 1,297 won Monday.

As widely expected, the Korean central bank is leaving the
one-day call rate unchanged at 5 percent in May, partly due to
concerns over inflation.

Jitters ahead of the Philippines' congressional and local
elections May 14 pushed the peso slightly lower, dealers said.

The dollar closed at 50.460 pesos on the Philippine Dealing
System, up from 50.440 pesos Monday.

The Thai currency was a touch higher at 45.575 baht against
the dollar, compared with 45.655 baht late Monday in thin
offshore trading, with Thai markets closed for a holiday.