Asian currencies mostly lower

Asian currencies mostly lower

SINGAPORE (Dow Jones): Most Asian currencies had drifted lower
late Tuesday as the dollar held on to its overnight gains against
the yen, although caution ahead of the U.S. Federal Reserve's
decision on interest rates confined trading to narrow ranges,
dealers said.

The Indonesian rupiah ended slightly lower against the U.S.
dollar, but off intraday lows as investors took profit on the
U.S. unit's gains, traders said.

The dollar closed at Rp 11,460, up slightly from Rp 11,425,
Monday's close, but down from the intraday high of Rp 11,580.

The U.S. currency hit the highs as local companies bought
dollars heavily to either repay debt or fund imports.

Investors are also concerned about Indonesia's deepening
political crisis, and would rather hold on to dollars for safety
than rupiah, traders said.

Later in the global trading day, the Fed's policy-setting arm,
the Federal Open Market Committee, is widely expected to slash
short-term interest rates for the fifth time since the start of
the year.

The market has priced in another interest rate cut of up to 50
basis points, dealers said.

Market participants will also be looking out for hints by
policymakers, in their post-meeting statement Tuesday, that the
Fed's aggressive easing campaign in recent months may be drawing
to an end.

After treading water earlier in the day, the Philippine peso
edged higher late Tuesday as Arroyo's coalition appeared to take
the lead in the midterm elections, dealers said.

On the Philippine Dealing System, the dollar closed at 50.18
pesos, down from Friday's close of 50.30 pesos.

Manila markets were closed Monday to enable 35 million voters
to go to the polls in a crucial race for 13 of 24 Senate seats,
thousands of municipal and provincial posts and the entire House
of Representatives.

Although fears of widespread violence during the elections
proved to be unfounded - the dozens of killings in election-
related violence weren't much higher than the previous election
in 1998 - the market's relief wasn't enough to boost the peso at
the start of the day

Until there is a clear outcome of the midterm elections, which
investors hope will give Arroyo a clear mandate to reform the
economy, investors will remain wary, dealers said. The final vote
tally isn't expected until later this week.

Other Asian currencies wavered under the sway of the yen,
which remained depressed below Y123 against the dollar after
falling below that level overnight.

At 0830 GMT (3:30 p.m. Jakarta time), the dollar was quoted at
Y123.26, little changed from Y123.28 late Monday in New York. The
dollar was at Y122.67 late Monday in Tokyo.

The Singapore dollar was at S$1.8182 against its U.S.
counterpart, slightly weaker compared with S$1.8151 late Monday.

Fears of provoking intervention by the Monetary Authority of
Singapore - which had last week mounted an aggressive defense of
the local currency - kept the U.S. dollar below S$1.8200, dealers
said.

In Seoul, the dollar finished at 1,303.7 won, up from 1,297.4
won Monday.

Against the New Taiwan dollar, the U.S. dollar closed at
NT$32.930, up from NT32.882 Monday.

Weighed by the Singapore dollar and the yen, the Thai currency
weakened slightly to 45.515 baht to the U.S. dollar, from 45.485
baht late Monday.