Asian monies

Asian monies
down late,
peso ends at
15-month low

Nirmala Menon
Dow Jones
Singapore

Most Asian currencies retreated Thursday as the U.S. dollar
extended its overnight gains against the yen, with the Philippine
peso closing at a 15-month trough, weighed down by the
government's fiscal woes.

The dollar ended at 53.370 pesos on the Philippine Dealing
System - its highest close since Aug. 3, 2001 - and up from
53.220 pesos Wednesday after trading between 53.260 pesos and
53.430 pesos.

Traders noted market positioning by some banks ahead of the
government's 10-month budget deficit data next week.

Generally, across the region's currency markets, market
players covered short dollar positions after the U.S. unit firmed
further as worries about an impending war in Iraq subsided.

But trading ranges remained tight as the early spate of dollar
buying wasn't sustained into the afternoon, traders said.

"Everyone expected the short covering, but there hasn't been
very much follow-through. It seems to have stalled in the
afternoon," said a trader at a European bank in Singapore.

Market players are now waiting for several important economic
data due out of the U.S. later Thursday and Friday for clues
about the health the economy.

Wall Street's reaction to those data will also be closely
watched as the U.S. equities market is likely be a key factor
that will determine the direction of regional currencies,
analysts say.

The New Taiwan dollar also tracked the yen lower, with
offshore players actively buying the U.S. currency.

The dollar ended at NT$34.736, up from Wednesday's NT$34.619.
Intraday, it moved between NT$34.674 and NT$34.745.

All eyes are now on the island's third-quarter gross domestic
product data, scheduled to be released after the market's close
Friday.

Taiwan's GDP likely expanded 4.21 percent on year in the July-
September period, making it the fastest growth rate since the
third quarter of 2000, according to a Dow Jones Newswires poll.

The Singapore dollar weakened in tandem with the yen but
recovered some lost ground late in the day.

At 1039 GMT (6.39 pm Jakarta time), the U.S. dollar was quoted
around S$1.7635 compared with S$1.7637 late Wednesday. During the
Asian session, it traded between S$1.7655 and S$1.7680.

The outlook for the local dollar remains weak and speculation
was still rife that the Monetary Authority of Singapore may
loosen its currently neutral monetary policy bias, dealers said.

The government will issue its assessment of third-quarter
economic performance next week, and some analysts say that might
also be the time the MAS gives some hint of policy direction,
ahead of its scheduled policy review in January.

In Thailand, the dollar ended the Asian session at 43.385
baht, up from around 43.290 baht late Wednesday, on the weaker
yen and dollar short covering by banks.

The dollar hovered around its intraday low of 43.350 baht
early in the day after breaching the 43.200 baht resistance
overnight.

"The fact that the 43.200 baht resistance didn't hold
triggered stop-loss purchases by banks," said a Bangkok trader.

The dollar peaked at 43.450 baht in the afternoon before
profit-taking and exporter selling pulled it back from that
level.

But the rupiah edged up for the fifth straight session amid
talk the Indonesian Bank Restructuring Agency, or IBRA, was
selling dollars. The dollar ended at Rp 9,025, down from Rp 9,055
Wednesday.

"The amount of dollars IBRA sold seemed to be significant,"
said a dealer with a local bank.

Dealers said IBRA's dollar sales overcame demand from local
companies, which were buying dollars to repay maturing offshore
debts.

The agency's dollar sales have helped push the dollar down to
near Rp 9,010 - the level at which it was trading before the Oct.
12 Bali bombings drove it up to Rp 9,400.

IBRA is tasked to raise over Rp 46 trillion this year to help
finance the state budget deficit.