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.