20000114

Indian rupee

BOMBAY: The Indian rupee ended steady against the dollar on Thursday after mostly trading in a tight range throughout the day, dealers said.

"The rupee opened slightly weaker adjusting for the weekend carry. In the morning, there was some (dollar) demand from one of the Madras-based banks. But there were enough supplies at 43.53 levels," a broker said.

The rupee ended at 43.5225/5275 per dollar against the previous close of 43.52/525.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah edged higher on Thursday, lifted by offshore dollar selling, but dealers warned political and economic uncertainty still hung over the currency.

They said players who had been long of dollars cashed in their profits after the US currency failed to hang on to 7,300 rupiah after breaking that level on Wednesday.

The rupiah was quoted at 7,175/7,200 against the dollar versus 7,230/7,280 in late local trade on Wednesday.

"Trading continues to be driven mainly by corporate demand. The rupiah could again come under fresh pressure from economic and political uncertainty," one European bank dealer said.

Concern over the financial condition of the central bank, as well as violence in the spice islands and restive Aceh province, was keeping the market wary, dealers said.

But they said the market had grown used to violence in Indonesia's troublespots and only serious bloodshed would have a significant impact on the rupiah.

The announcement that the head of the Indonesian Bank Restructuring Agency (IBRA) was being replaced had no significant market impact. Dealers said the important question was whether IBRA's new chairman, Cacuk Sudarijanto, would be able to speed up debt restructuring and bank recapitalisation.

Dealers said a visit to Jakarta this week by Singapore Prime Minister Goh Chok Tong could help the rupiah if it heralded substantial capital inflows from Singapore, but given Indonesia's current woes most regard this as unlikely.

Goh said a US$500 million co-investment fund would be set up for Singapore government-linked companies to buy assets owned by the Indonesian Bank Restructuring Agency (IBRA), and a Singapore $400 million loan financing facility would also be available for Singapore-based companies investing in Indonesia.

The market is also awaiting Indonesia's next budget and the signing of a new letter of intent with the International Monetary Fund, both scheduled for January 20.

Bank Indonesia said 30.812 trillion of rupiah funds matured early on Thursday while 23.066 trillion was settled at the same time. The interbank overnight rate was largely unchanged at around 9.5 percent.-Reuters

Chinaese yuan

SHANGHAI: China's yuan ended almost unchanged against the dollar in slow trade on Thursday as bank traders kept to the sidelines on the absence of new market-moving factors, dealers said.

The yuan finished at 8.2798 to one US dollar against 8.2797 on Wednesday after moving in a narrow range of 8.2790 and 8.2804.

"A lack of fresh market-moving factors kept the yuan in a narrow range," said a local bank dealer. "The trend is likely to continue in the near term."

The yuan has been under pressure from worries that China's entry to the World Trade Organisation, expected later this year, would lead to faster growth in imports, they said.

But it was supported by a steady inflow of foreign exchange from China's trade surplus, estimated at $30 billion last year, dealers said.

The yuan was likely to move mainly in a narrow range of 8.2790 and 8.2800 in the near term, they said.

The yuan closed little changed against the Japanese yen at 7.8294 to 100 yen against 7.8290 on Wednesday.

It ended marginally lower against the Hong Kong dollar at 1.0640 to HK$1.0 from 1.0638. -Reuters

S Korean won

SEOUL: The South Korean won closed higher against the dollar on Thursday on dollar sales by foreign equity investors as well as stop-loss selling, dealers said.

State-run banks bought dollars when the won-dollar fell below the 1,140 level in morning trade, but the government intervention was swamped by continued dollar inflows.

Foreigners were net buyers of 160 billion won worth of stocks on Wednesday, stock brokers said.

The won closed at 1,135.1 per dollar against Wednesday's close of 1,144.5.

It opened at 1,144.9 and moved between 1,134.5 and 1,144.9. "Dollar supplies stemming from foreign stock buying on Wednesday were a main factor for the won's strength," said a foreign bank dealer.

"As foreign investors were net sellers of 44 billion won worth again on Thursday, the won-dollar rate would stabilise between 1,132 and 1,138 on Friday."

The central bank's comments that the won is under pressure to appreciate due to current account surplus helped prompt stop-loss dollar sales as the remarks were interpreted as indicating the government would refrain from intervening.

But dealers said monetary authorities would not allow the won to rise over the 1,130 level for the time being.-Reuters

Philippine peso

MANILA: The Philippine peso reversed its early gains to close slightly weaker on Thursday as firms bought dollars after the local unit reached 40.40.

The local unit closed at 40.60 to the dollar from 40.58 on Wednesday. It ranged from 40.40 to 40.61.

Strong regional currencies earlier pushed the peso to its day-high of 40.40, which dealers said firms saw as a good buying level in light of the recent volatility of the unit.

Dealers said inflows of investments into local firms also boosted the peso in early trade.

"We took a cue from the baht at the opening so the peso went as far as 40.40. There were some buyers below 40.50 and they were there until the closing," a dealer with a foreign bank said.

Another dealer said: "Banks are mostly squarish on dollars now. They were short by selling dollars to corporates and they just covered their short positions."

The peso was volatile in the recent week in reaction to the sudden resignation of Finance Secretary Edgardo Espiritu, and fears of a US interest rate hike.

New Philippine Finance Secretary Jose Pardo told Reuters on Thursday the peso would remain stable and should hold within the 40 per dollar level as the government steps up efforts to contain the budget deficit.

Dealers said the peso could range from 40.45 to 40.60 on Friday.-Reuters