Won gets boost from Hyundai plans

Won gets boost from Hyundai plans

HONG KONG (Dow Jones): Signs the Hyundai Group may soon
release its restructuring plans boosted the Korean won Wednesday.

The U.S. dollar was trading mostly lower against major
Southeast Asian currencies on hopes for a soft landing in the
U.S. economy and steady policy from the U.S. Federal Reserve.

It was up slightly against the Indonesian rupiah, but off
against the Thai baht, Philippines peso and Singapore dollar.

Pieter van der Schaft, economist with Barclays Capital, said
the won may also benefit from talk that the Bank of Japan will
end its 18-month zero-interest rates policy when it meets Friday,
although that has yet to have much impact on the yen.

The Hyundai hopes emerged early on local reports that South
Korean President Kim Dae-jung ordered the government to resolve
the Hyundai Group's liquidity problems by this week.

A presidential spokesman denied Kim had set the deadline for
this week, but hopes remained that Hyundai and its creditor banks
will soon push through Hyundai's reform plan.

The dollar finished at 1,115.00 won, down from Tuesday's close
of 1,115.90 won and 1,117.30 late Monday.

Overall, Asian currency trading was quiet, however, with the
National Day holiday in Singapore sapping much the market's
trading energies.

Van der Schaft at Barclays said Southeast Asian currencies
clearly continued to benefit from the relative strength of the
Indonesian rupiah.

The U.S. dollar was trading at Rp 8,588, up just slightly from
Rp 8,573 late Tuesday and after reaching as low as Rp 8,560
earlier. Singapore dealers said last session that the Rp 8,500
level is a good level to buy U.S. dollars and many still contend
that the rupiah isn't yet out of the woods.

Investors in rupiah are cheered, however, as Indonesian
President Abdurrahman Wahid proceeds relatively unscathed through
the annual session of the People's Consultative Assembly.

Wednesday, Indonesia's parliament speaker said he backed moves
for Vice President Megawati Soekarnoputri to take over control of
the government if President Abdurrahman Wahid focuses more on
foreign policy.

Wahid said in a speech Tuesday that he will focus his energies
on foreign relations.

Hopes for a soft landing in the U.S. economy - fueled by last
week's benign jobs numbers for July - and that the U.S. Federal
Reserve will hold rates steady when it meets Aug. 22, also
bolstered Asian currencies Wednesday, said van der Schaft.

The U.S. dollar was quoted at 40.915 baht, down from 41.11
late Tuesday.

The dollar closed at 44.840 on the Philippine Dealing System,
down from 44.875 pesos at the previous close.

Against the Singapore dollar the U.S. currency was quoted at
1.7215, down from 1.7260 late Tuesday and compared with the
Taiwanese dollar it was quoted at NT$31.09, little changed.