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Indian rupee

BOMBAY: The Indian rupee ended steady on Friday in low volume trade with dollar supplies meeting most of the import demand, dealers said.

There was oil import demand and some hedging of foreign exchange loans and excess dollar supplies were absorbed by state-run banks, they said.

The rupee ended at 43.61/615 per dollar compared with its previous close at 43.6125/6175.-Reuters

Chinese yuan

SHANGHAI: China's yuan closed marginally lower against the dollar on Friday despite the announcement of positive January foreign trade data.

The yuan ended at 8.2772 to one US dollar against 8.2770 on Thursday after moving in a range of 8.2771 to 8.2776. After the market closed on Thursday, state television announced China had a trade surplus of $1.5 billion in January, up slightly from $1.49 billion for the same month last year. January exports rose 47.8 percent year-on-year to $16.8 billion, it said.

But dealers said the figures were in line with expectations and had already been factored into the market. "January trade data showed a continued upward trend for China's exports since the second half of last year and was viewed as an indication of further improvement this year," said a dealer at a foreign bank.

"But the market expected the news and the impact has been factored into the yuan's exchange rate through recent rises." Dealers said the yuan was likely to move at the higher end of a range of 8.2770 and 8.2780 in the near term.

The yuan closed higher against the Japanese yen at 7.4650 to 100 yen compared with 7.5400 on Thursday. It ended unchanged against the Hong Kong dollar at 1.0632 to HK$1.0.-Reuters

S.Korean won

SEOUL: South Korea's won closed lower versus the dollar on Friday as investors bought the greenback on expectations monetary authorities will step up their dollar support, dealers said.

The won closed at 1,129.0 per dollar against on Thursday's close of 1,128.0. It opened at 1,130.5 and moved between 1,128.7 and 1,132.0. Finance Ministry officials said the ministry will issue about one trillion won in foreign exchange stabilisation bonds on Monday, in lieu of a planned treasury bond auction. Faced with a withering yen and hefty dollar inflows from foreign buying of local shares, monetary authorities will have little choice but to step in and drive the won lower, dealers said.

The ministry has frequently said a strong won, especially against the backdrop of a faltering yen, could eat into the price competitiveness of leading Korean exports such as semiconductors which compete with Japanese offerings. Still, dealers said massive dollar inflows resulting from foreign stock buying limited the won's depreciation on Friday and could provide similar cushion next week.

The yen weakened on Friday after Economic Planning Minister Taichi Sakaiya said Japan may not reach the government's 0.6 percent growth target for the financial year ending March 31. The yen dropped to 110.73/78 per dollar, a new five-month low, compared to 110.12/15 in late Tokyo trading on Thursday.

In Korea, monetary authorities bought dollars whenever the dollar/won rate fell below the 1,129 level, dealers said. Won support was generated by dollar inflows ensured by hefty foreign buying of local stocks, which including Kosdaq over-the-counter shares was estimated at a net 410 billion won on Friday.

Dealers said the temptation to sell dollars above the 1,130 level remained strong given the prospects of dollar inflows from that stock buying and some $7 billion deposits held by local exporters.

They forecast the dollar/won rate would range from 1,125 to 1,133 next week. In the non-deliverable forward trading, the six-month won stood at 1,130/31 against on Thursday's close of 1,129/30, while the one-year won was 1,133.5/35.5 against 1,133.5/34.0.-Reuters

Philippine peso

MANILA: The Philippine peso ended at a fresh two-week low on Friday, dragged down by falling regional currencies on concerns over Japan's economic health, traders said. A testimony last night by US Federal Reserve Alan Greenspan pointing to a possible tightening in US monetary policy did not surprise the market and traders said most players were more concerned about a possible downgrade in Japan's domestic debt.

The peso closed at 40.67 to the dollar against on Thursday's 40.57. It traded within a 10-centavo range of 40.59 to 40.69 after opening at 40.63. "Everyone knows about the possibility of a further rise in US interest rates but the peso adjusted more because of the dollar/yen," said a trader from a foreign bank. Total turnover was slightly higher at $213.50 million against Thursday's $203.20 million.

Some banks sold dollars at the 40.60 to 40.65 level because there was lack of dollar demand from corporate clients. "Everyone is looking to sell (dollars) because there is no demand. Banks do not want to be left with dollars with no one to sell to," said one trader from a local bank.

But after the baht and other regional currencies continued to slide, banks bought dollars again to cover short positions in late afternoon trade, traders said. The baht slipped further to touch the 38/38.05 to the dollar level in late on Friday trade from 37.78/81 in morning trade.

The yen was quoted at 110.82/87 to the dollar at the spot market from 110.78/86 in morning trade. The local currency will likely retain its weaker bias next week, with major support seen at the 40.70-40.75 level.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah regained some ground in late trade on Friday, but sentiment remained cautious despite encouraging remarks from the World Bank.

The rupiah was quoted at 7,400/7,430 to the dollar. It touched a low of 7,460 earlier in the day amid easier regional currencies, particularly the weakening in the yen against the dollar. The rupiah was quoted at 7,390/7,420 in late local trade on Thursday.

"The rupiah regained some ground in late trade as foreign investors hunted for bargains following recent steep loses on the local stock market," one European bank dealer said.

Sentiment on the rupiah remained weak despite comments from World Bank President James Wolfensohn that there has been some turnaround in the Indonesian economy and that it was on a reasonable track, dealers said.

"Higher electricity prices would have multiple effects on prices. It would drive prices higher. There are also concerns of higher prices because of the government's plan to raise taxes. These things would shoot up inflation," another dealer said.

A parliamentary commission said on Friday the government and the commission which is in charge of electricity have agreed to raise top end electricity prices by an average 29 percent from April 1.

Bank Indonesia said 5.9 trillion rupiah in funds matured early on Friday. The benchmark overnight interbank rate remained largely stable, hovering at 9.375 percent for foreign banks and 9.5 percent for local banks.-Reuters

Taiwan dollar

TAIPEI: The Taiwan dollar ended unchanged against the US dollar on Friday as steady inflows of foreign equity funds kept the local unit from trailing the Japanese yen lower, dealers said.

CLOSE: unchanged at T$30.715 to the US dollar.

TURNOVER THROUGH DEALERS: Active at US$347 million, though below Thursday's US$412.5 million. The Taiwan dollar opened lower at T$30.723 to the US dollar and traded in a narrow range. Dealers said continued foreign fund inflows offered solid support to the Taiwan dollar and kept the local unit from moving in lockstep with the weaker yen.On the smaller Cosmos market,

The Taiwan dollar ended at T$30.708 compared to on Thursday's close at T$30.705 with turnover edging down to US$95 million from US$103 million on Thursday. Dealers said the Taiwan dollar slipped to an intraday low of T$30.744, moving in line with the yen's fall, but they noted greenbak sales by exporters and persistent foreign fund inflows slowed the local unit's downward momentum. Foreign funds were net buyers of T$1.359 billion in local stocks on Friday, bringing cumulative total net buying to T$8.116 billion over the four consecutive sessions.

Dealers in Taipei said the US currency gained strong momentum to the Japan's yen after Moody's announced on Thursday it had put Japan's government debt for review for a possible downgrade.

Taiwan's statistics agency announced gross domestic product grew 6.77 percent year-on-year in the fourth quarter, which gave fresh evidence of the island's economic recovery.

One dealer at a foreign bank said the sound economic fundamentals offered further support to Taiwan currency, but he noted the local unit's upward momentum hinged largely on the central bank's preference. Dealers expected the Taiwan dollar to trade in a range of T$30.65-T$30.75 under the central bank's apparent intention of a stable Taiwan unit.-Reuters