Asian currencies slip in late trading

Asian currencies slip in late trading

SINGAPORE (Dow Jones): Asian currencies are lower late
Thursday as the U.S. dollar claws back recent losses against the
Japanese yen.

The South Korean won fell to a one-month low against the U.S.
dollar Thursday and its stock market index plunged as investors
grew anxious that tightening credit and the specter of widespread
bond redemptions in the fourth quarter would ramp up local
interest rates.

The Singapore dollar, Thai baht, Indonesian rupiah, Philippine
peso were also weaker in late Asian trading. In late trading, the
U.S. dollar was trading at 105.05 yen, well up from Wednesday's
intraday low of 103.35 yen.

Andrew Fung, treasury economist at Standard Chartered Bank in
Singapore, said the prospect of a stronger yen would not drive
regional currencies higher against the U.S. dollar. "There is no
appetite to buy regional currencies, even as the U.S. dollar
weakens; there will be no big reaction if the dollar falls to 100
yen," he said.

In late trading, the U.S. dollar was trading at 1,197.3 won,
up from 1,193 won in late Asian trading Thursday.

On the Philippine Dealing System, the U.S. dollar was also
trading at 40.165 pesos, up from 39.935 pesos late Wednesday.
Traders said the U.S. dollar rebound and simmering tensions in
Indonesia have pushed the peso down, even though there are
increasing signs the country is experiencing an economic
resurgence. In the seven months to July, the Philippines posted a
trade surplus of $755 million, compared with a $1.44 billion
deficit in the same period last year.

The U.S. dollar was trading at S$1.6931, well up from $1.6887
late Wednesday. Traders said nothing fundamental had changed with
respect to the Singapore dollar.

"The U.S. dollar moved higher against the Singapore dollar, in
line with the gains made against the other regional currencies,"
a trader at a U.S. investment house in Singapore said, adding
there are no signs of direct or indirect intervention by the
Monetary Authority of Singapore.

The U.S. dollar was also trading at Rp 8,110, up a touch from
Rp 8,050 late Wednesday. An extremely thin market - precipitated
by ongoing tension related to East Timor as well as fallout from
the ongoing Bank Bali scandal involving an illegal transfer of
funds - has sidelined much of the market.

Indonesian President B.J. Habibie said Thursday that he has
asked the Attorney General to thoroughly investigate the banking
scandal and prosecute any wrongdoers. The president also appealed
to the public to put the scandal in proportion, saying it
shouldn't be allowed to damage the bank recapitalization program.

Against the Thai baht, the U.S. dollar was trading at Rp
39.795, up from Rp 39.4250 late Wednesday. The U.S. dollar
managed to hit a 12-month high of Rp 39.92 in intraday trading
before slipping back on profit-taking, traders said, adding
ongoing demand for U.S. dollars to pay for offshore debts has
been placing downward pressure on the baht.

Thailand's deputy finance minister, Pisit Leeahtam, said
earlier Thursday that the government was unconcerned by any move
in the dollar above 40 baht, as long as it was in line with the
value of other regional currencies.

In other trading, the U.S. dollar was quoted at NT$31.745,
down a touch from NT$74.755 late Wednesday.