Most Asian currencies flat as rampant won extends rise

Most Asian currencies flat as rampant won extends rise

SINGAPORE (Dow Jones): Asian currencies again took a back seat
to a rampant won in Asian trading Wednesday.

The won extended its recent rises, jumping as much as 0.8
percent to its highest level since late June on more repatriation
of funds from a capital raising in the U.S., and on foreign
purchases of South Korean stocks due to the nation's strong
economic outlook.

However, the rest of the Asian currencies were barely changed
late Wednesday from a day earlier.

Although local South Korean stocks fell 0.5 percent, net
purchases of stocks by foreigners reached an estimated 62.1
billion won on the day.

Traders said both the repatriation of funds raised by a $180
million initial public offer of shares in Korea Thrunet (KOREA)
for its listing earlier this month on Nasdaq, and expectations
that Moody's Investors Service may further upgrade South Korea's
sovereign ratings soon, continued to help the won.

The rapid rise of the won, its acceleration in each of the
past three trading sessions, and climbing bond yields are all
causing official concern, and prompted intervention Wednesday in
the foreign exchange and bond markets.

State-run Korea Development Bank bought the U.S. currency in
its routine daily dollar-supportive action. The action helped the
dollar to bounce from an intraday low of 1,159.90 won, but
sentiment toward the won remains bullish.

By the end of domestic trading Wednesday in South Korea, the
U.S. dollar had fallen to 1,163.00 won from 1,169.50 won at
Tuesday's close.

Elsewhere, the New Taiwan dollar was unmoved despite a 1.5
percent fall in the Taiwan Index of share prices on news the
Morgan Stanley Capital International will wait until May 2001 to
give Taiwan a 100 percent weighting in two key MSCI market
indexes.

At the end of domestic dealing in Taipei, the U.S. currency
was quoted at NT$31.728 from NT$31.727 late Tuesday.

In late Asian trading, the U.S. currency was at 38.6600 Thai
baht, up slightly from 38.6350 baht in late the previous session.

Traders said the minor weakness of the baht was unrelated to
the long-expected filing of a censure motion against the
government by the parliamentary opposition, and was rather due to
a small outflow of capital.

Debate of the censure motion likely won't take place until
mid-December, and the government is expected to survive.

Meanwhile, the U.S. dollar is at Rp 7,100 late Wednesday, up
slightly from Rp 7,075 late Tuesday.

Against the Singapore dollar, the U.S. unit was trading at
S$1.6680, down from S$1.6697 previously.

And versus the Philippine peso, the U.S. currency ended at
40.640 pesos, unchanged from Tuesday's close.