Asian monies mostly down late

Asian monies mostly down late

SINGAPORE (Dow Jones): Most Asian currencies were weaker late Monday, with the Thai baht and Philippine peso sinking below key support levels, heralding more weakness for these two currencies, dealers said.

The ailing Philippine and Thai currencies cast a shadow on the Singapore dollar, which slipped to the weaker end of its recent trading band.

Largely ignoring the weakness of its Southeast Asian counterparts, the Indonesian rupiah was steady as it took a breather following its recent volatility and amid relief that a new letter of intent with the International Monetary Fund was imminent.

In North Asia, the New Taiwan dollar was marginally weaker.

Extending last week's gains, the South Korean won continued to outperform its regional peers as some analysts turn increasingly bullish on its short-term prospects.

The Thai baht led the weaker currencies in the region, ignoring the Japanese yen's resilience, due to thin technical selling by offshore participants and as local exporters abstained from selling dollars, dealers said.

After bursting through the 41-baht psychological resistance mark, the dollar swiftly overcame its next technical resistance level at 41.10 baht.

Around 0815 GMT, the dollar was at 41.135 baht, up from 40.795 baht late Friday.

Expectations that the Bank of Thailand will affirm its low- interest-rate policy at its Monetary Policy Board Tuesday and mounting political anxieties ahead of the country's general election, likely to be held in the fourth quarter, also contributed to the market's aversion toward the baht, dealers said.

And "with the central bank not looking to intervene at this stage, the baht can look to weaken further" said Steve Brice, treasury economist at Standard Chartered Bank.

He added that the dollar will likely test the upside target of 42 baht "in the coming week or two."

The dollar closed at 45.30 pesos on the Philippine Dealing System, up from Friday's close of 45.150 pesos.

Offshore dollar-buying in the non-deliverable forward market and the baht's break below the 41 baht support level to the dollar helped pressure the peso's descent below the key 45.20 peso support level against the U.S. currency.

Brice at Standard Chartered Bank said the dollar is poised to test its next key technical resistance level of 46.10 pesos in coming weeks.

Weighed by the fall in the Thai and Philippine currencies, the Singapore dollar weakened to S$1.7217 against the U.S. currency, from S$1.7210 late Friday. The U.S. dollar continued to face resistance around S$1.7225.

The Indonesian rupiah was little changed at Rp 8,300 to the dollar, compared with Rp 8,298 late Friday.

Remarks Sunday by Indonesia's senior economics minister Rizal Ramli that the government will sign a new agreement with the International Monetary Fund Thursday eased earlier worries about a rift between Indonesia's new economic team and the lending agency.

The agreement will pave the way for the next disbursement of funds under a $5 billion IMF bailout program.

In contrast to the slump elsewhere in Asia, the South Korean won surged to its highest closing level against the U.S. dollar since November 1997 on dollar-selling by local exporters and banks, dealers said.

The dollar finished at 1,104.40 won, its lowest close since Nov. 24, 1997, when it ended at 1,085 won. The U.S. currency closed Friday at 1,105.70 won.

In Taiwan, the U.S. dollar finished marginally higher at NT$31.063, from Saturday's close of NT$31.061.