Asian currencies mostly up late, as baht rally

Asian currencies mostly up late, as baht rally

SINGAPORE (Dow Jones): Most Asian currencies were higher, as the baht's rally late Tuesday countered the downward pressure on the South East Asian units from a softer Japanese yen, dealers said.

But the South Korean won succumbed to the yen's slight weakness and a 2.2 percent decline on the local equity market, dealers said.

The Indonesian rupiah ended higher against the dollar in thin trading Tuesday as Jakarta made it through the long weekend without any major political surprises, dealers said.

The dollar closed at Rp 11,225, down from its close Friday at Rp 11,450.

Local markets was closed Monday for a Muslim holiday.

Offshore banks unwound their long-dollar positions as President Abdurrahman Wahid appears to be losing his battle against parliament, with the military and police distancing themselves from the embattled president.

The Thai currency threatened to test the psychologically important level of 45 baht per dollar as offshore banks, uncertain about - if not averse to - stricter foreign exchange requirements involving non-resident accounts from July, unwound long dollar positions, dealers said.

Options-related dollar sales and stop-losses below 45.300 baht pushed the dollar to 45.095 baht at 0815 GMT (3:15 p.m. Jakarta time). Late Monday, the dollar was higher 45.370 baht.

Many of the offshore banks received official documents Tuesday on the more stringent disclosure rules, which require banks to provide more information on baht settlements involving non- resident accounts from July 2.

"There was nothing surprising, but most of them feel this could be a prelude to full-scale capital controls," said an Asian bank dealer.

The Singapore dollar, which had earlier in the day faltered along with the Japanese yen, found solace from the baht's rally.

At 0930 GMT (4:30 p.m. Jakarta time), the U.S. dollar was quoted at S$1.8102, lower than S$1.8132 late Monday.

The Philippine peso received a stronger boost from a lower- than-expected inflation rate in May and the ratification of a long-delayed bill that will restructure the country's power industry.

The government early Tuesday said the inflation rate in May eased to 6.5 percent on-year, from 6.7 percent over the last three months, fueling expectations of a further reduction in the central bank's overnight rates.

The dollar closed at 50.590 pesos on the Philippine Dealing System, down from 50.765 pesos Monday.

In Taiwan, U.S. dollar sales by exporters and banks, combined with foreign equity fund inflows to bolster the local currency, dealers said.

Against the New Taiwan dollar, the U.S. currency closed at NT$34.043, down from NT$34.065 Monday.

In Seoul, the dollar finished at 1,286.7 won, slightly higher than Monday's close of 1,285.8 won.