Asian monies mixed on Iraq, economy fears

Asian monies mixed on Iraq, economy fears

Dow Jones, Singapore

Asian currencies were locked in tight ranges in largely directionless trade Wednesday amid a dearth of fresh factors, though concerns about Iraq loomed large in the minds of market players, dealers said.

The South Korean won, Philippine peso and Indonesian rupiah eked out small gains versus the U.S. dollar, while the New Taiwan dollar and Thai baht weakened slightly.

The Singapore dollar was quite steady in subdued trading as market players kept to the sidelines amid concerns about the domestic economy that led to speculation the Monetary Authority of Singapore may soon loosen its currently neutral monetary policy bias.

The U.S. dollar was quoted around S$1.7645, up from S$1.7637 late Tuesday.

Peter Redward, regional forex strategist at Deutsche Bank, said market players are looking for direction from Wall Street as they try to weigh between the prospects of a slowdown in regional economies - "people would be quite shocked at the magnitude and speed of the slowdown" - and a weakening dollar.

Markets are now waiting for Federal Reserve Chairman Alan Greenspan's comments on the economy when he testifies before the Joint Economic Committee of Congress later Wednesday, though most people aren't expecting any major surprises.

Also, several important sets of U.S. economic data over the next couple of days are expected to provide further insights into the health of the economy.

In South Korea, the dollar ended at 1,202.2 won, down from 1,206.0 won Tuesday.

In Taiwan, the U.S. currency was lifted as market players onshore and offshore covered short positions against the New Taiwan dollar.

The U.S. unit closed at NT$34.619, up from Tuesday's NT$34.565.

Meanwhile, dollar buying by local oil companies helped boost the currency against the Thai baht, though it remained in a tight band between 43.14 baht and 43.21 baht during the Asian session.

Late in Asia, the dollar was quoted around 43.29 baht, up from 43.12 baht late Tuesday.

Elsewhere, the dollar ended at 53.220 peso on the Philippine Dealing System, down from 53.270 peso Tuesday as banks took profits on the currency's recent gains.

In Indonesia, the dollar also ended lower on selling by state- owned banks, likely on behalf of the central bank, dealers said.

The dollar closed at Rp 9,055, down from Rp 9,085 previously.