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Indian rupee

BOMBAY: The Indian rupee ended slightly firm on Wednesday amid heavy dollar sales of bunched weekend inflows, customary sales by banks and some suspected foreign fund inflows, dealers said.

The rupee ended at 43.5975/6025 per dollar compared with Tuesday's 43.6125/6175.

Dealers said trade was range-bound as a state-run bank absorbed most of the dollars which the rest of the market was selling.

"All of the market was selling and only one or two nationalised banks were buyers," a dealer with a private bank said.

Dealers said a bulk of the inflows were from the Gulf countries and some were conversions of remittances made during the long weekend on account of the U.S. markets holiday on Monday.

Forward premiums at the near-end continued to be under pressure from paying by corporates hedging imports and banks covering short-term fund requirements, dealers said.

"The forward premium curve is now inverted, tapers downward from June," a dealer with a state-run bank said.

The six-month premium ended Wednesday at an annualised 2.85 percent compared with Tuesday's 2.77.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah was rangebound on Wednesday, unruffled by reports police were on standby for a large demonstration that never materialised, but showing few signs it was poised to start gaining ground.

The rupiah was quoted at 7,430/7,435 versus 7,435/7,455 in late local trade on Tuesday.

Indonesian government officials had predicted the currency would strengthen to 7,000 once political uncertainty subsided.

But despite an easing of tensions with the military, the currency has shown little inclination to advance.

"It has been very stable today, despite the early rumours. But there's no sign it will benefit from the improved political situation. We are not expecting much movement this week," said a dealer at a European bank in Jakarta. -Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar closed slightly higher against the US dollar on Wednesday in what dealers called a result of central bank's defence following China's widened threats of force against the island.

Dealers said rebound of the closely watched yen overseas and small inflows of foreign equity funds also lent some support to the Taiwan dollar.

CLOSE: T$30.785 to the US dollar, firming from on Tuesday's close at T$30.791. On the smaller Cosmos exchange, the Taiwan unit finished a touch higher at T$30.795 from on Tuesday's T$30.798.

TURNOVER THROUGH DEALERS: Brisk at US$547.5 million, compared with Tuesday's US$419 million.Cosmos turnover swelled to US$139 million from Tuesday's US$66 million.

Dealers said Tuesday's fall of the Taiwan dollar under the shadow of China's threats apparently prompted the central bank to step in on Wednesday to prevent the Taiwan unit from falling below T$30.8.

The Taiwan unit slipped nearly nine Taiwan cents on Tuesday, echoing a slide in the Taiwan stocks, which fell anew on Wednesday as the political ultimatium from China soured market sentiment.

China on Monday warned Taiwan against stalling negotiations of reunification with the mainland, saying such an act could lead to the use of "drastic measures, including military force" to take the island.

Dealers said they saw no major impact of the China threats on the local foreign exchange market on Wednesday, and the central bank's defence helped calm investors and interbank operators.

Dealers said the yen's gains overseas gave further boost to the Taiwan dollar.

On Wednesday, the Japanese yen was trading around 110.55 to the US dollar in late Tokyo trade, up from 110.82 in New York on Tuesday.

Dealers said small inflow of foreign equity funds after two days of heavy stock declines helped ease worries over fund outflows and turn interbank operators to sell their US dollar holdings.

On Wednesday, foreign funds showed net buying of T$764 million in Taiwan stocks, against net selling of T$1.445 billion on Tuesday.

Dealers expected a trading range of T$30.75-T$30.80 for Thursday.-Reuters

Chinese yuan

SHANGHAI: China's yuan closed unchanged against the dollar on Wednesday for the second day as support from expectations of a healthy trade surplus this year offset selling pressure, dealers said.

The yuan ended at an intraday high of 8.2770 to one US dollar, unchanged from Tuesday. It touched a low of 8.2784.

Dealers said tension between China and Taiwan had little impact on trading on Wednesday.

There were no signs of central bank intervention in the tightly-controlled market, they said.

The yuan was supported by expectations of good foreign trade data as China's exports have shown signs of improvement since the second half of last year, dealers said.

China's exports surged 47.8 percent year-on-year to $16.8 billion in January, producing a trade surplus of $1.5 billion.

But the yuan has risen in the past two weeks, lifted by the trade data, and the potential for further rises was limited, dealers said.

"Bank traders seem to have consensus that current exchange rate level suits the yuan," a local bank dealer said.

Dealers said the yuan was likely to move in a narrow range between 8.2770 and 8.2780 in the short term.

The yuan closed higher against the Japanese yen at 7.3910 to 100 yen compared with 7.4230 on Tuesday. It ended unchanged against the Hong Kong dollar at 1.0633 to HK$1.0. -Reuters

S.Korean won

SEOUL: The South Korean won closed weaker against the dollar on Wednesday as overseas operators placed strong dollar bids toward the end of the session, dealers said.

The won closed at 1,135.3 compared with on Tuesday's close of 1,134.0.

It opened at 1,134.5 and moved in a tight range of 1,132.0 and 1,135.5. "The rate, which had been hovering at around 1,133.8, was pushed up on last-minute bids by offshore players," said a foreign bank dealer.

Dealers estimated offshore dollar buying at between $150 million and $200 million on the day.

Currency analysts said overseas operators maintained long dollar positions built up since Monday, emboldened by the government's determination to keep the market stable.

South Korean President Kim Dae-jung said on Tuesday the dollar/won rate should be properly regulated, though he did not elaborate.

Some dealers said they could not pin down the exact cause for the steady bids by offshore players.

"The market was a little bit confused about President Kim's remarks as he also talked about ways to boost the local stock market, including wider foreign participation," said a dealer at a local bank.

The greenback's slight retreat versus the yen in overseas markets had little impact on the dollar's bullish sentiment versus the won, dealers said.

In Tokyo, the dollar was trapped in a tight range around 110.53/0.58, down from 110.82 yen in New York late on Tuesday.

The six-month non-deliverable forward (NDF) won was quoted at 1,136/37 versus 1,135/36 late on Tuesday.

The one-year won stood at 1,139/41 against 1,140/41 -Reuters

Philippine peso

MANILA: The Philippine peso ended firmer against the dollar on Wednesday but it was off its day-high as corporates started buying the dollar. The local unit ended at 40.70 from the close of 40.745 on Tuesday. It firmed to a day-high of 40.60 in afternoon trade, but corporate dollar buying later nudged the peso lower at the close.

Dealers said corporates viewed 40.60 as a good dollar-buying level as sentiment on the Philippine market, battered by a stock fraud scandal, has yet to improve.

"We just followed the region. That's why the peso went up although it didn't break 40.60 because there was corporate demand at that level," a dealer at a foreign bank said. Dealers said the bias was still for a weaker peso due to low domestic interest rates.

"I think the upside for the peso is not strong because of low interest rates while we're expecting a 25 to 50 basis point rate hike in the United States," a local dealer said.

Philippine central bank governor Rafael Buenaventura said the policy-making Monetary Board had decided to keep key overnight rates unchanged for next week.

He cited a stable inflation rate and exchange rate, and said investor confidence in the country remained intact.

But Thomson Financial Bankwatch revised on Wednesday the Philippines' sovereign risk rating outlook to stable from positive.

The rating firm said the country's economic performance was now in danger of lagging the region and the government's large fiscal burden has continued to undermine public confidence.

Dealers placed the immediate trading range for the peso at 40.60 to 40.75.-Reuters.