Asian monies mostly up, yen provides reprieve

NETTY ISMAIL, Dow Jones, Singapore

Most Asian currencies were higher late Thursday, as the yen's upward correction prodded participants to trim their long dollar positions accumulated in recent sessions, dealers said.

Uninspired by the region's gains, the New Taiwan dollar was steady as a result of dollar sales by exporters and major local banks, dealers said.

Elsewhere, participants were wary of clinging to their long dollar positions ahead of the weekend, as the U.S. gears up for probable action against Afghanistan's ruling Taliban regime and its guest, suspected terrorist leader Osama bin Laden.

There are suspicions that the Indonesian rupiah and the Philippine peso found additional solace from central bank intervention, dealers said.

As the U.S. currency took a breather from its recent ascent, dealers said there was still interest to pick up dollars on any dip.

"The dollar has come up a long way," said a dealer at a European bank. "Let it consolidate a while and go down a little bit more, then we can start going long dollars."

Amid a myriad of uncertainties spawned by the Sept. 11 attacks in the U.S., Asian currencies will continue to amble in familiar territory in the short term, although the region's grim fundamentals will eventually cast a shadow on its currencies, market watchers said.

For now, the dollar's direction against its Asian counterparts depends on whether the U.S. currency stays above 120 yen and whether the U.S. equity market extends its rebound, said Peter Redward, a regional currency strategist at Deutsche Bank.

At 0845 GMT (or 0345 p.m. Jakarta time), the dollar was quoted at 120.38 yen, below 120.65 yen late Wednesday in New York. The dollar was at 120.88 yen late Wednesday in Tokyo.

A surprise jump in the U.S. service sector activity sparked a 1.9 percent jump in the Dow Jones Industrial Average Wednesday.

The National Purchasing Managers non-manufacturing index rose to 50.2 in September from 45.5 in August. Index readings above 50 indicate expansion of activity and prices in the non- manufacturing sector, while readings under 50 indicate a contraction.

Still, uncertainty over the economic impact that the Sept. 11 attacks may have on the U.S. - and the resultant impact on export-dependent Asia - persisted, with market participants now awaiting employment reports to be issued this week.

The initial report on U.S. jobless claims for the week ending Sept. 29 and the Challenger survey of job losses in September will be issued Thursday.

The data will give the market a foretaste of the key data that will be unveiled Friday: September's non-farm payroll report and unemployment rate.

After having floundered past the psychologically important 10,000 rupiah level to the dollar earlier this week, the Indonesian rupiah led the rebound in Asia's foreign exchange markets Thursday.

Suspected dollar sales by the Indonesian central bank and the unwinding of long dollar positions dragged the U.S. currency down to Rp 9,740, compared with Rp 9,915 late Wednesday.