Asian monies reach year highs

Asian monies reach year highs

Alan Yonan Jr., Dow Jones, Singapore

Asian currencies surged against the dollar Friday - some to
their highest levels in more than a year - as improving prospects
for economic recovery continued to stir investors' interest in
the region.

The South Korean won and Thai baht strengthened to 15-month
highs, while the Philippine peso posted its best performance
against the dollar in 14 months.

The Indonesian rupiah hit an eight-month high, the Singapore
dollar a seven-month high and the New Taiwan dollar a five-month
high.

"We're starting to see good growth and export numbers from
Asia. Current account surpluses are rising and countries are
attracting portfolio inflows as well as foreign direct
investment," said Thio Chin Loo, senior currency strategist at
BNP Paribas in Singapore.

Greater tolerance for risk has whetted investor's appetites
for emerging market assets, particularly those in Asia, she said.

The yen's strength also set a firmer tone for Asian
currencies, dealers said.

Authorities in South Korea attempted to curb the won's rise
with verbal intervention.

The Ministry of Finance and Economy issued a statement saying
it was concerned about the dollar's sharp fall against the won
and would take action if warranted.

The dollar rose slightly after the statement, but resumed its
slide when the ministry didn't act on its warning.

The limited impact from the government's statement was also
due in part to seemingly contradictory remarks from Finance
Minister Jeon Yun-churl, made at almost the same time.

Jeon said that dollar/won exchange rate reflects the health of
South Korea's economy, which traders interpreted to mean the
government was comfortable with the won's strength.

The dollar closed at 1,261.6 won, down from Thursday's close
at 1,269.8 won. Friday's close marked the won's strongest finish
against the dollar since March 1, 2001.

Rising regional currencies and recent upbeat comments from the
government regarding Thailand's export prospects underpinned the
baht.

Near the end of Asian trading, the dollar was quoted at 42.740
baht, down from 42.845 baht late Thursday. It was the baht's best
close since Feb. 20, 2001.

The peso got swept up in the euphoria driving other regional
currencies.The U.S. dollar closed at 49.46 pesos on the
Philippine Dealing System, down from 49.52 pesos Thursday. It was
the peso's strongest finish since March 29,2001.

The peso also was supported by remittance inflows from
overseas Filipino workers and thin corporate demand for the U.S.
dollar.

There was talk in the market that the central bank took
advantage of the cheap U.S. currency to buy about US$30 million
to boost its reserves, which helped contain the peso's rise.

The Indonesian rupiah was buoyed by gains in its regional
peers and continued optimism over the government's privatization
program.

Late in Asia the U.S. dollar was quoted at Rp 9,080 rupiah,
down from Rp 9,150 late Thursday. It was the rupiah's best
showing since Sept. 14, 2001.

Still, the rupiah was unable to seriously test key resistance
at Rp 9,000 to the U.S. dollar as local companies that owe debt
overseas picked up the U.S. currency at the lower levels.

The Singapore dollar was helped by strong economic data and
comments from the Monetary Authority of Singapore that it's
comfortable with the currency's current level against the U.S.
dollar.

Near the end of Asian trading the U.S. dollar was quoted at
S$1.7950, down from S$1.8024 late Thursday. It was the Singapore
dollar's strongest performance since Oct. 5, 2001.

The government reported that non-oil domestic exports rose a
surprising 6.4 percent on year, the first increase after 13
consecutive months of decline.

MAS Assistant Managing Director Khor Hoe Ee told reporters
that the trade-weighted Singapore dollar is still within the
central bank's undisclosed policy band, "and we are comfortable
with it."

Foreign funds flowing into Taiwan from the recent sale of $700
million worth of convertible bonds by Cathay Financial Holding
helped lift the local currency.

The U.S. dollar ended at NT$34.458, down from NT$34.538
Thursday.

It was its strongest close for the New Taiwan dollar since
Dec. 12, 2001.