Asian monies down, uncertainty prompts demand for greenback

Asian monies down, uncertainty prompts demand for greenback

SINGAPORE (Dow Jones): Asian currencies were mostly weaker
late Friday as uncertainty over events in Indonesia and other
countries prompted investors to stock up on dollars ahead of the
weekend.

Economic and political concerns took their toll on the
Indonesian rupiah, Thai baht and Philippine peso, which all
finished the week at new lows for the year.

"There us a lot of uncertainty heading into the weekend and
the market is responding by holding dollars," said Alison Seng,
currency strategist at Standard & Poor's MMS.

The rupiah was unable to shake negative sentiment associated
with a political battle between President Abdurrahman Wahid and
his opponents in parliament.

Late Friday, the dollar was quoted at Rp 9,305, up slightly
from Rp 9,290 late Thursday. The rupiah has fallen nearly 35
percent since Abdurrahman took office nine months ago, and some
analysts say a further decline to Rp 10,000 in the coming months
is not out of the question.

The fall of the rupiah will "undermine Indonesia's outlook in
terms of inflation performance, confidence and the ability of the
country to service its external debt," Standard Chartered Bank
currency strategist Steve Brice said in a research report.

The Thai baht was pressured by strong dollar demand, slow debt
repayment by banks and the corporate sector, and political
concerns, dealers said.

Late Friday, the U.S. dollar was quoted at 39.705 baht, up
from 39.545 baht at the end of the previous session.

Sentiment was damped by worries that the next Thai general
election expected this fall could leave a political vacuum that
would lead to a slowdown in economic reform, dealers said.

The Philippine peso fell below the key level of 44 pesos to
the dollar for the first time in 21 months.

The dollar closed at 44.030 pesos on the Philippine Dealing
System, up from Thursday's close of 43.950 pesos.

Traders said the peso tracked the weaker Indonesian rupiah and
Thai baht.

Domestic concerns, such as lackluster economic growth
prospects, the unresolved crisis in southern Mindanao and weak
confidence in the Estrada administration, also continue to hurt
the peso.

In South Korea, a threatened strike next week by unionized
bank employees put pressure on the won.

The dollar closed at 1,118.80 won, up from 1,117.20 won the
day before.

Talks Friday between the government and union leaders ended
inconclusively, although the two sides agreed to resume talks
Sunday. Bank employees plan to strike Tuesday to protest the
government's banking sector reform plans.

The failure of the two sides to reach a settlement spurred
local banks to cover short-dollar positions, traders said.
Separately, dollar-buying by overseas players in the non-
deliverable forward market also pressured the won, traders said.

The Singapore dollar fell victim to the regional demand for
U.S. dollars ahead of the weekend, dealer said.

Late in Asia the U.S. dollar was quoted at S$1.7371, up from
S$1.7360 late Thursday.

Dealers said there was no sign of intervention by the Monetary
Authority of Singapore, even though the U.S. dollar briefly rose
above last week's high of S$1.7380 in intraday trading.

However, if the U.S. dollar rises much higher next week,
perhaps above a key S$1.7400 level, the MAS may feel compelled to
take action, dealers said.

The New Taiwan dollar was unchanged against the U.S. currency
Friday as U.S. dollar-selling by the central bank offset downward
pressure on the local unit from ailing Taiwan stocks, dealers
said. The U.S. dollar closed at NT$30.839.