Asian currencies mostly up late as stock markets surge

Asian currencies mostly up late as stock markets surge

TOKYO (Dow Jones): Most Asian currencies rose modestly late
Monday, spurred by the surge in many of Asia's stock markets
despite the yen's slight fall against the U.S. dollar.

But with important U.S. economic data out later this week, the
Asian currencies are expected to drift sideways for the rest of
the week, analysts said.

The Indonesian rupiah closed lower Monday as local companies
bought dollars to service their debts, traders said.

News that the government has signed a new agreement with the
International Monetary Fund had no affect on the market as the
deal was widely expected.

The dollar fell to an intraday low of Rp 8,575 on mild rupiah
buying ahead of the IMF pact, but recovered in afternoon trade to
close at Rp 8,740 from Rp 8,700 Friday.

"The IMF news was already discounted by the market," said a
trader with a Jakarta-based foreign bank.

The agreement paves the way for the IMF to resume lending to
Indonesia under its suspended US$5 billion program.

The letter of intent outlines a series of economic reforms the
government must complete in return for loans. The document will
go before the IMF's board in Washington in two weeks. After
approval, the fund will hand Indonesia the next $400 million in
loans under the program.

Traders expect the dollar to trade between Rp 8,675 and Rp
8,775 Tuesday.

The dollar was also quoted at 120.31 yen, slightly above
120.15 yen late Friday in New York and above 119.80 yen late
Friday in Asia.

In Taipei, the New Taiwan dollar benefited from the local
stock market's rally, which was partly fueled by a consensus
achieved by the Taiwanese president's economic advisers Sunday to
relax bans on links with China.

The presidential economic development advisory council
concluded a three-day summit in Taipei Sunday by deciding that
the restrictive "no haste, be patient" China investment policy
should be replaced by "proactive opening and effective
management."

"Taiwan's stock market had a nice recovery today. We might see
the U.S. dollar probe good technical support at NT$34.50 this
week if the stock market continues its gains," BNP Paribas
Singapore's Loo said.

The Korean won edged higher against the U.S. currency in the
wake of the local stock market's gains late Monday after the
surge in U.S. stock markets Friday.

The U.S. dollar was quoted at 1,280.80 won, down from 1,281.20
won Friday.

The Thai baht extended its recent gains against the U.S.
dollar, rising to another five-month high late Monday after
setting a new five-month high of 44.315 baht Friday.

The baht's rise was helped by the Thailand stock market's
gains on the back of follow-through buying from Friday and
expectations that Prime Minister Thaksin Shinawatra will be
seeking extra funds from China during a visit which begins
Monday.

The Singapore dollar tracked most other Asian currencies
higher on some unwinding of long U.S. dollar positions, analysts
said.

But the Singapore currency's gains were somewhat curbed by
very weak industrial output data for July.

Late Monday, the U.S. dollar was quoted at S$1.7483, lower
than S$1.7498 Friday in Asia.

The Philippine peso bucked the overall trend of regional
currency strength, falling slightly against the U.S. dollar on
limited demand for the U.S. currency from companies covering
their month-end requirements.

But the peso regained some of its lost ground as the central
bank stepped in to support the local currency, dealers said.

The dollar was last at 51.130 pesos, higher than 51.050 pesos
Friday.