Asian monies mostly up late, equity inflows boost won

Asian monies mostly up late, equity inflows boost won

SINGAPORE (Dow Jones): Most Asian currencies strengthened
modestly against the U.S. dollar Tuesday, with a rebound in North
Asian stock markets bolstering the South Korean won and New
Taiwan dollar.

In Southeast Asia, Thai markets continued to rally following
an opposition party victory in the weekend general election. The
Philippine peso and Indonesian rupiah got a boost from the firmer
baht, while the Singapore dollar edged lower.

The Indonesian rupiah closed flat Tuesday as late dollar
buying by state banks erased all of the local unit's earlier
gains.

After falling to an intraday low of Rp 9,455, the dollar
closed at Rp 9,505 in Asia, unchanged from its close Monday.

The dollar was capped below Rp 9,500 for most of the day as
offshore banks and foreign banks in Jakarta liquidated their
long-dollar positions after expected aggressive dollar bids by
local companies didn't take place.

However, state banks bought the dollar just before the close
of trading, pushing the U.S. currency above Rp 9,500, dealers
said.

"The amount of the dollar purchase wasn't large, but it easily
moved the market because overall trading volume was thin and
dollar sellers had been out from the market," said a dealer with
a foreign bank.

After an abysmal 2000, stock markets in Seoul and Taipei are
off to a roaring start this year, fueling gains in their
respective currencies.

South Korea's main index is up 16.9 percent so far this year
while Taiwan's has risen 13.4 percent.

The rise in the won triggered some stop-loss selling of the
dollar, pushing the U.S. currency to an intraday low of 1,250.1
won. The dollar recovered slightly late in the day to close at
1,255.1 won, down from 1,265.8 won late Monday.

The New Taiwan dollar rose to a seven-week high on the
strength of foreign equity funds inflows and continued U.S.
dollar selling by exporters.

The U.S. dollar closed at NT$32.695, down from NT$32.789 late
Monday, and its the lowest level since NT$32.493 on Nov. 21.

The Thai baht opened the day stronger at 42.835 per dollar as
the market rallied on the belief that the electoral victory by
telecommunications tycoon Thaksin Shinawatra's party could boost
government stability.

However, support for the baht eroded over the course of the
day, particularly late in the session when the currency began
trading in London. Weighing on the baht was uncertainty about the
fate of Thaksin, whose future as prime minister has been clouded
by a corruption investigation.

Near the end of Asia trading, the dollar was quoted at 43.00
baht, a touch lower than 43.085 baht late Monday.

The Philippine peso was a touch stronger in subdued trading.
Demand for U.S. dollars was weak and there was a dearth of fresh
political or economic information on which to trade, dealers
said.

The dollar closed at its intraday high of 50.935 pesos on the
Philippine Dealing System, down from 50.940 pesos Monday.

The Singapore dollar weakened following suspected intervention
by the Monetary Authority of Singapore and corporate demand for
U.S. dollars, dealers said.

Late in Asian trading the U.S. dollar was quoted at S$1.7326,
up from S$1.7298 late Monday.

It is the MAS' policy not to comment on its interventions in
the foreign exchange market. In recent weeks, the MAS has been
suspected of buying U.S. dollars to prevent the excessive
strengthening of the local currency.