Asian monies mixed, won extends rebound

Asian monies mixed, won extends rebound

SINGAPORE (Dow Jones): Asian currencies were mixed late Tuesday, with the South Korean won outshining its regional peers as it extended Monday's sharp rebound.

The Thai baht and the Singapore dollar were also stronger, while the Philippine peso and the Indonesian rupiah were weaker as they succumbed to domestic concerns. The New Taiwan dollar also ended weaker.

In Seoul, heavy dollar-selling by local exporters and offshore speculative traders propelled the South Korean currency to an intraday high of 1,117.90 won against the dollar toward the closing, its strongest level in more than a week, market observers said.

The dollar closed at 1,119.10 won, down from Monday's close of 1,122.20 won. The dollar lost about 1 percent of its value Monday as the won found solace from the arrest in skyrocketing oil prices, which hit 10-year highs last week, and a rally on the local stock market.

The stability on the Seoul bourse and expectations of more month-end dollar-selling by local exporters had prompted offshore speculative traders to bail out of their long dollar positions, market observers added.

The dollar will likely fluctuate between 1,100 won and 1,150 won until the end of the year, dealers said.

Relief over a continued pullback in oil prices, after the U.S. decision to tap into the country's strategic reserves, and fears of further euro-supportive intervention continued to provide some respite for the Thai baht and the Singapore dollar, dealers said.

Dollar profit-taking by offshore players and waning onshore corporate demand for the U.S. currency, as the Thai financial year closes at the end of this week, also helped the baht, dealers said.

Around 0930 GMT, the dollar was at 42.290 baht, down from 42.66 baht late Monday.

Against the Singapore dollar, which mirrored the baht's gains, the U.S. currency fell to S$1.7437 from S$1.7468 late Monday.

But doubts about whether oil prices could come down further and concerns over a relapse in the fall of the euro are expected to limit the gains in Asian foreign exchange markets, currency watchers said.

In the Philippines, the dollar surged to a fresh 32-month high of 46.30 pesos early Tuesday on another domestic fuel price hike, but retreated on suspected intervention by the central bank, dealers said. The central bank, however, reportedly denied defending the peso Tuesday, dealers said.

Late Tuesday, the dollar was at 46.24 pesos, up from Monday's close of 46.165 pesos.

The Indonesian rupiah also lost further ground following Monday's losses as market participants braced for the possibility of more violence and bomb blasts before former President Soeharto's scheduled court appearance Thursday.

After refusing to attend previous court sessions on the grounds of failing health, it is doubtful if Soeharto would be present Thursday when his trial resumes.

Market participants were also discouraged by the International Monetary Fund's comments late Monday that Indonesia must dispel political uncertainty and intensify reforms if economic recovery is to take hold.

The dollar was at Rp 8,855, up from Rp 8,838 late Monday.

Foreign fund equity outflows and importers' demand for the U.S. currency dented the New Taiwan dollar, dealers said. The U.S. dollar closed at NT$31.288, up from NT$31.272 Monday.