Asian Currencies Mostly Dn Late;Off Lows On Taliban News
Asian Currencies Mostly Dn Late;Off Lows On Taliban News
SINGAPORE (Dow Jones): Most Asian currencies wavered late
Tuesday, but were off their intraday lows as the dollar lost
ground against the yen following reports the ruling Taliban had
urged Afghans to prepare for a holy war against the U.S. should
it attack.
"The markets are nervous about a war," said a dealer at an
Asian bank.
The Taliban is shielding suspected terrorist Osama bin Laden,
the prime suspect in last week's attacks that devastated the
World Trade Center in New York and the Pentagon in Washington.
Earlier in the day, the dollar found solace from a flurry of
interest rate cuts overnight by several of the world's most
influential central banks. Their resolve to stabilize the markets
and protect the global economy helped calm nerves in foreign
exchange markets.
The U.S. Federal Reserve initiated the coordinated policy
easing, slashing interest rates by half a percentage point to 3
percent. The European Central Bank, which also lowered interest
rates by half a percentage point, was among the other major
central banks that followed suit.
The Bank of Japan is widely expected to announce Tuesday - a
day ahead of its original schedule - an easing of its already
ultra-loose monetary policy.
Still, the dollar remains wobbly, amid concerns over a
possible recession in the U.S. and uncertainty over the nature
and scope of U.S. military retaliation against the perpetrators
of the terrorist attacks, currency watchers said.
The Singapore dollar was weaker at S$1.7364 against its U.S.
counterpart, compared with S$1.7325 late Monday.
The relative strength of the Singapore dollar against the
currencies of its major trading partners stoked fears of central
bank intervention, especially after the Business Times newspaper
reported Tuesday the Monetary Authority of Singapore is ready to
act if U.S. financial markets deteriorate following last week's
terrorist attacks.
The Indonesian rupiah closed lower Tuesday as the markets
ignored a 50-basis-point cut in U.S. rates, focusing instead on
local company's demand for dollars to repay debt.
The dollar was quoted between Rp 9,520 and Rp 9,560 late
Tuesday, much higher than Rp 9,310 to Rp 9,340 Monday.
Bank Indonesia sold about $30 million to $50 million through
brokers in the market to try and help the rupiah, but to no
avail, according to Jakarta-based bankers.
In the Thai currency market, unconfirmed talk by some dealers
that Bank of Thailand had bought dollars below 44 baht Monday
through its agent banks in Singapore kept the U.S. currency
supported.
The baht was weaker at 44.225 baht to the dollar, compared with
44.010 baht late Monday.
In Seoul, the dollar finished at 1,296.9 won, down from
1,298.7 won Monday.
Oil importers in South Korea continued to buy dollars to
hedge, amid fears of a spike in oil prices, especially if the
U.S. retaliates for the attacks against an oil-producing country
or region, dealers said. South Korea is a net importer of oil.
On the Philippine Dealing System, the dollar closed at 51.370
pesos, up from 51.260 pesos Monday.