Most Asian monies down in late trading

Most Asian monies down in late trading

SINGAPORE (Dow Jones): Position squaring ahead of the weekend damped Asian currencies late Friday, with the South Korean won feeling the brunt of the local stock market's relentless slide, dealers said.

And with the historic summit between the two Koreas that ended Thursday out of the way, investors reverted their attention to the woes plaguing South Korean companies. Market talk that a particular medium-sized conglomerate was facing a financial crunch also bruised the won, dealers said.

Although dealers were hesitant to disclose the name of the conglomerate, stock market talk of a liquidity crunch at Ssangyong Group pressured shares of the conglomerate's affiliates Friday.

Ssangyong Cement Co., one of Friday's big decliners on the local stock market, and its leading creditor Chohung Bank, denied market talk that the company may file for a debt-workout plan.

The dollar finished at 1,116.20 won, up from Thursday's close of 1,115 won.

The U.S. currency climbed to an intraday high of 1,117.50 won in the morning on net selling in the Seoul stock market by foreign investors. However dollar-selling by local exporters stymied the U.S. currency's advance, dealers said.

The dollar is expected to be hemmed in around 1,110 won to 1,120 won next week, analysts said.

The Indonesian rupiah failed to extend this week's upward momentum after it breached Rp 8,500 to the dollar resistance level Thursday. Even the prospect of higher domestic interest rates failed to inspire the currency. Bank Indonesia Governor Syahril Sabirin said Friday the central bank won't be able to maintain interest rates at current low levels due to the rupiah's weakness.

"There was a lot of pent-up demand for dollars by Indonesian corporates," a dealer at a Japanese bank said.

Bank Indonesia's moves to push interest rates higher this week in a bid to support the rupiah pushed some banks to take short- term positions betting on further local currency strength.

However, institutions liquidated these positions Friday ahead of the weekend after the rupiah was unable to break 8,500 rupiah to the dollar Friday, a local trader said.

In late trading, the dollar clawed higher to Rp 8,573, from Rp 8,540 late Thursday.

Against the Singapore dollar, strong commercial demand and short-covering ahead of the weekend pushed the U.S. dollar higher and it threatened to test the much-eyed S$1.7270 resistance level after breaking S$1.7250 late Friday, dealers said. Heavy buying by Japanese banks late in the day accelerated the U.S. dollar's ascent, they added.

Amid thin trading, the U.S. dollar was at S$1.7265, up from S$1.7207 late Thursday.

There was also talk of "unfilled orders" at around the S$1.7200 to S$1.7210 level, part of which could be linked to shipping company Neptune Orient Lines' US$150M consortium bid for Indonesia's Koja Terminal in Jakarta, dealers said.

In Thailand, the dollar rose to 39.045 baht from 39.005 baht on short-covering in dollar positions. A break above resistance of 39.100 baht could portend a move up to 39.400 baht and subsequently, 39.50 baht, analysts said.

The Philippine peso was eroded by the weaker baht and sparse dollar supply on the spot market.

The dollar closed at 42.595 pesos on the Philippine Dealing System, up from Thursday's close of 42.535 pesos.

Elsewhere, the New Taiwan dollar ended lower against its U.S. counterpart for the fifth straight session as importers and state-owned enterprises continued to snap up the U.S. currency, said dealers. The local dollar's decline was exacerbated by the outflow of equity funds.

The U.S. dollar ended at NT$30.845, up from NT$30.828 at Thursday's close.