Southeast Asian currencies lose ground

Southeast Asian currencies lose ground

HONG KONG (Dow Jones): Southeast Asian currencies in slipped
back in quiet trading on Thursday as market players covered their
short positions in the U.S. dollar ahead of the month's end.

The rupiah continued to slip in response to increased sniping
about the makeup of Indonesia's new cabinet, which just two days
previously had been hailed as an artful political compromise.
Toward the end of Asian trading, the U.S. dollar had climbed to
Rp 6,945, up from Rp 6,860 the day before.

Both the Singapore dollar and the Thai baht also fell back as
dealers covered their short positions in the U.S. dollar.

Late in Asian trading, the U.S. currency was quoted at
S$1.6691, up from S$1.6682 the previous day.

Against the baht, the dollar was at 38.8150 baht, compared
with 38.7500 baht on Wednesday.

The Philippine peso, too, lost ground, with the dollar
remaining well above the 40.000 pesos mark, after central bank
governor Raphael Buenaventura promised a 25-basis-point cut in
the central bank's key overnight borrowing rate.

At the close, the U.S. dollar was at 40.210 pesos, up from
40.005 pesos at the end of Wednesday's session.

The release in Seoul of strong economic data for September
underlined the power of Korea's economic recovery and helped
drive the won higher, as the U.S. dollar dropped to close below
the psychologically significant 1,200 won.

Elsewhere the Taiwanese central bank, facing heavy trade and
investment inflows, allowed the New Taiwan dollar to continue
inching upward toward its highest level in two years.

Data released Thursday illustrated the magnitude of the upward
pressure on the won, as a booming export sector brought South
Korea's current account surplus for the first nine months of the
year to $19.16 billion.

Although that figure represents a decline of 40 percent
compared with the equivalent period last year, the surplus
remains strongly won-supportive.

At the same time analysts interpreted the fall favorably for
Korea, saying the sharp rise in imports seen in 1999 emphasizes
the recovery in the domestic economy.

That view was supported by data showing that wholesale and
retail sales were up by an impressive 14 percent in September,
compared to the previous year.

Despite the fundamental upward pressure on the won, dollar
buying by the authorities, which have now built up foreign
currency reserves of nearly $65 billion, limited the local
currency's gains.

At the close of trading in Seoul, the U.S. dollar was quoted
at 1,199.70 won, compared with 1,200.60 won at the end of
Wednesday's session.

The New Taiwan dollar also edged higher Thursday, with the
U.S. currency dropping to NT$31.737 in intraday trading, its
lowest level since early December 1997.

By Thursday's close the U.S. dollar had lifted off its earlier
low to end the session at NT31.743, down from NT$31.747 the day
before.