Asian monies fall against dollar

Asian monies fall against dollar

HONG KONG (Dow Jones): Sentiment toward Asian markets
deteriorated sharply Friday, as regional currencies dropped
against the U.S. dollar for the third day running.

External factors, including tensions between Taiwan and China,
renewed fears of a Chinese devaluation and Alan Greenspan's
hawkish stance on U.S. interest rates, severely dented investors'
confidence in the region.

But domestic influences also played an important role in
driving the sell-off.

In South Korea, rising bond yields triggered a 7.3 percent
collapse in the local stock market, propelling the won to a two-
month low during the session.

The Thai baht dropped to its lowest level in three months as
offshore investors reversed their long positions in the local
currency, a move partly triggered by the announcement earlier in
the week of unexpectedly poor banking-sector results.

And the Indonesian rupiah fell to hit a one-month low,
undermined by the rapid fall in domestic interest rates.

Heavy buying of dollars against the won saw the U.S. currency
driven as high as 1,211.50 won in intraday trading, before it
settled to close at 1,208.40 won, only marginally higher than
1,208.30 won at Thursday's close.

Buying pressure pushed the U.S. dollar as high as 37.4600 baht
in intraday dealing, before the U.S. currency eased back to end
Asian hours at 37.3450 baht, up from 37.3050 baht late Thursday.

A combination of factors was blamed for the fall in the
Indonesian rupiah.

In addition to the recent drop in rupiah yields, dealers in
Jakarta cited position-squaring by four state-owned banks before
they are folded into a single entity - Bank Mandiri - next month.

Intraday trading saw the U.S. dollar rise as high as Rp 7,080,
before it was pushed lower again by offers that dealers say were
placed by a nervous Bank Indonesia.

Late in Asian trading the U.S. currency had eased back to be
quoted at Rp 6,867, up from Rp 6,767 the previous day. Many
dealers expect the U.S. dollar to push beyond Rp 7,000 over the
coming week, climbing as high as Rp 7,200.

Against the Singapore dollar, the U.S. dollar rose as high as
S$1.7010, before being pushed lower again by offers above
S$1.7000.

Toward the close of Asian trading, the U.S. dollar was quoted
at S$1.6983, little changed from S$1.6985 the day before.

Despite a fall in the Manila stock market, the Philippine peso
held its ground Friday, steadied by the central bank's decision
to keep interest rates unchanged Monday.

At the close of local trading, the U.S. dollar was quoted at
38.320 pesos, down from 38.450 pesos Thursday.

Against the New Taiwan dollar, the U.S. currency ended the day
at NT$32.272, down from NT$32.285 the day before.