Asian monies mixed in lackluster trading

Asian monies mixed in lackluster trading

Dow Jones, Singapore

Asian currencies were a mixed bag late on Tuesday at the tail end
of a generally lackluster session in which some central banks
intervened to cap strength in their units, traders said.

The Singapore dollar and Philippine peso were weaker, the
Indonesian rupiah and South Korean won were little changed and
the New Taiwan dollar was stronger.

The Thai baht was firmer compared with pre-weekend levels but
was lower from offshore levels on Monday, when local markets were
shut for a holiday.

Monetary authorities in Thailand, Taiwan and South Korea were
those suspected of buying dollars in Tuesday's session.

Traders said these central banks were in the market to smooth
the movements of their currencies rather than attempt to reverse
the strengthening trend.

The yen didn't provide much of a lead for its counterparts in
the region as market players shrugged off early sharp gains in
Tokyo share prices and the Bank of Japan's decision to keep
monetary policy unchanged.

The dollar ended at 1,176.0 against the South Korean won, a
touch below Monday's 1,176.3 won, but off the intraday trough of
1,174.6 won.

This was the won's sixth straight session of gains.

There was suspicion the government intervened to prop up the
dollar when it fell to the intraday low on continued foreign
buying of local shares, but traders had mixed views about this.

Against the New Taiwan dollar, the U.S. unit ended at
NT$34.364, slightly down from NT$34.376 on Monday.

The Singapore dollar weakened after a listless session as
investors were reluctant to take strong positions ahead of
Greenspan's address.

The U.S. unit was quoted at S$1.7553 late in the local
session, up from S$1.7540 late on Monday.

Earlier on Tuesday, the Monetary Authority of Singapore said
its current neutral monetary policy stance will be appropriate to
keep inflation in check and support the economy for the rest of
the year.

The Indonesian rupiah was steady as dollar demand from local
importers offset selling by foreign investors buying into local
stocks and bonds, dealers said.

The dollar ended at Rp 8,223, virtually unchanged from Rp
8,225 on Tuesday.

Continued capital inflows showed that foreign investors are
undeterred by a small bomb blast at the Indonesian Parliament
building on Monday. There were no casualties in the incident.

"The market seemed to have fully forgotten Monday's blast," a
Jakarta-based dealer with a foreign bank said.

The Philippine peso was weighed down by seasonal demand for
the dollar from importers, and also security concerns following
the escape on Monday of three suspected terrorists from a Manila
prison, traders said.

The dollar closed at 53.585 pesos on the Philippine Dealing
System, up from 53.545 pesos on Monday, but off the intraday high
of 53.635 pesos.

The peso trimmed some losses on news of the Supreme Court
ruling in favor of the government on the disputed Swiss deposits
of late president Ferdinand Marcos, traders said.

The Supreme Court on Tuesday forfeited in favor of the
government the frozen Swiss deposits, which had increased to
$658.2 million early last year.

Central Bank Governor Rafael Buenaventura said the court's
ruling "would be good not only for the peso, but for the
government budget as well."