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Indian rupee

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

The rupee ended at 43.525/53 per dollar against the previous close of 43.5225/5275.

"Much of the business was done in the 43.5225-43.5275 range," a foreign bank dealer said.-Reuters

Indonesian rupiah

JAKARTA: Indonesia's rupiah regained some ground as players squared their positions in afternoon trade after the currency retreated in early trading on Friday.

The rupiah was quoted at 7,150/7,200 against the dollar compared with 7,205/7,245 against the dollar in early trade and 7,175/7,200 in late local trade on Thursday.

"Traditionally on Friday local players sell their dollars and square their positions," said one dealer at a local bank.

Dealers said they expected rupiah trade to be confined in a range of 7,150 to 7,300 for the next week, adding that political and economic uncertainty were the major factors in the market.

They said the market largely ignored US Federal Chairman Alan Greenspan's remarks seen supporting higher US interest rates.

Dealers said many players would stay on the sidelines next week ahead of the announcement of Indonesia's new budget on Thursday. But analysts expect the currency to appreciate over the longer term.

A Reuters survey of 10 research houses, released on Friday, forecast on average the rupiah at 6,685 against the dollar by the year-end.

Amid continuing political and economic uncertainty, however, the poll sees little change by mid-year from recent levels, with an average forecast of 7,166.

Dealers said the local money market remained flush with liquidity as Bank Indonesia said 5.76 trillion of rupiah funds matured early on Friday.

The interbank overnight rate was largely unchanged at around 9.5 percent. -Reuters

Chinese yuan

SHANGHAI: China's yuan ended little changed against the dollar on Friday, ignoring foreign trade figures for last year, dealers said.

The yuan finished at 8.2797 to one US dollar against 8.2798 on Thursday after moving in a narrow range of 8.2796 to 8.2800.

China had a trade surplus of $29.1 billion in 1999, compared to a surplus of $43.6 billion in 1998, official media said after the market closed on Thursday.

Customs data showed exports rose a year-on-year six percent to $194.9 billion, while imports surged 18.2 percent to $165.8 billion, state television said.

"The trade data had been expected by the market and was already factored into the yuan's exchange rate," a local bank dealer said.

Dealers said the healthy surplus had ensured a steady flow of foreign exchange into the market, helping keep the yuan stable.

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

The yuan closed higher against the Japanese yen at 7.7755 to 100 yen against 7.8294 on Thursday.

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

Philippine peso

MANILA: The Philippine peso ended slightly higher on Friday but dealers said the uptrend was limited after US Federal Reserve Chairman Alan Greenspan indicated in a speech an imminent rise in US interest rates.

"The peso was stable.There was not much (dollar) buying interest because banks are now square to slightly long (on dollars)," one dealer said.

The local unit closed at 40.585 per dollar from 40.60 on Thursday. It ranged from 40.51 to 40.645. Turnover fell to $125.5 million from $244.9 million.

Most banks paused from buying dollars after having built slightly long positions on the currency during the week, while corporate demand still lagged, dealers said. Dealers said most banks opted to hold on to their dollars should the US Federal Reserve raise its interest rates higher than 25 basis points.

Chairman Alan Greenspan said the Fed supported raising interest rates to prevent an overheating of the US economy.

But dealers said banks could not take overly long dollar positions because they were also on the lookout for higher domestic interest rates.

In its weekly meeting on Friday, the Monetary Board, the policy-making body of the Philippine central bank, decided to keep overnight rates unchanged next week.

"There has been some speculation on the peso which started when (President Joseph) Estrada revamped his cabinet. If interest rates go higher, the peso might strengthen," a local dealer said.

But central bank governor Rafael Buenaventura later told reporters there was still room for local rates to go down because domestic inflation would remain low.

Dealers said banks were also cautious against being too long on dollars because the central bank could intervene to prop up the peso when it touches 40.75 per dollar.

"Although the central bank denied it, the market felt it was there when the peso hit 40.90 this week. We still feel that 40.75 is the level which could prompt the central bank (to intervene)," the local dealer said.

Dealers placed the peso could range from 40.40/40.75 early next week.-Reuters

S Korean

SEOUL: The South Korean won closed sharply higher against the dollar on Friday after new Finance Minister Lee Hun-jai said intervention would be avoided unless trading was volatile, dealers said.

Lee's comments triggered stop-loss dollar sales by banks and dollar unloading by exporters despite some dollar buying by state-run banks, they said.

The won rose to 1,124.8 per dollar by the close from Thursday's close of 1,135.1.

It opened at 1,135.0 and moved between 1,124.8 and 1,135.0. State-run banks, such as Korea Development Bank, appear to have bought about $100 million worth at around 1,127/28 won during the morning trade, dealers said.

"The state banks' dollar buying was ignored due to minister Lee's comment that the won-dollar rate would be largely determined by the market," a foreign bank dealer said.

Dealers said the market would stabilise between 1,118 and 1,130 next week.

"The won-dollar rate would hover around the 1,125 level for the time being with the government appearing to be comfortable with it," a local bank dealer said.

A Finance Ministry official confirmed that Lee told reporters on Thursday after his appointment the government would not artificially manipulate the won-dollar rate unless the market showed volatility.

Lee, formerly chairman of the Financial Supervisory Commission, was appointed minister of finance and economy on Thursday, replacing Kang Bong-kyun.

Under Kang's reign, the ministry had vowed action to stabilise the currency market if and when necessary. Dealers said market players would be careful not to be overly short on dollars because Lee's position indicated the government could still intervene if there is a sharp dollar fall.

"The government's defence line seems to have moved back to the 1,120 level from 1,130," said another local bank dealer. "That will be tested next week."

Foreign investors were net buyers of 176 billion won worth of stocks on Friday despite a key index fall, raising expectations of dollar inflows as a result of settlements for foreign stock buying, dealers said.

They said the won was expected to strengthen steadily against the dollar this year because the country was likely to record a current account surplus, a Reuters poll released on Friday showed.

Foreign direct and equity investment in South Korea is expected to be robust, while the yen's strength is also seen pushing the won higher.

A poll of 10 interbank dealers and economists showed an average forecast of 1,080 won per dollar at the end of June and 1,034 won at the end of this year.

The finance ministry has said the country's current account surplus was expected to total $12 billion in 2000 after exceeding $25 billion for 1999.

Analysts said the dollar was currently overvalued against the won because of heavy intervention by monetary authorities late last year and early in January.

In the non-deliverable forward market, the six-month won closed at 1,123.2/25.5, while the one-year won was quoted at 1,128/31.-Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar slid against the US dollar on Friday despite strong foreign equity fund inflows and dealers said the central bank was actively buying greenbacks to check its gains.

Dealers said there was little immediate impact from US Federal Reserve chairman Alan Greenspan's hints that US interest rates were likely to be raised in February.

Dealers said aggressive central bank moves to blunt the Taiwan dollar's appreciation were the main force behind its softer tone, noting that the Japanese yen's modest gains in Tokyo should have helped lift the Taiwan unit.

CLOSE: T$30.85 to the US dollar, coming off an intraday low of T$30.865 but still below Thursday's T$30.838 close.

TURNOVER THROUGH DEALERS: active at US$483 million, but off Thursday's US$525.5 million.

The Taiwan dollar opened at its intraday low of T$30.865 and stayed in negative territory for most of the session.

On the smaller Cosmos market, the Taiwan dollar ended weaker at T$30.841 compared to Thursday's T$30.785 finish, with turnover edging up to US$81 million from US$76 million.

Dealers said exporters were exploiting the central bank's muzzling of the Taiwan dollar's rise to lay discard US dollars and lay in local currency to meet expected holiday cash demand ahead of the lunar new year holiday, which falls on February 5.

"The central bank is doing little more than giving exporters a chance to sell their US dollar before the lunar new year," said one dealer in a major local bank.

Dealers said the central bank's blunt intervention in recent sessions was intended as a warning to speculators not to try to manipulate the Taiwan dollar's appreciation by pushing it beyond what is justified by prevailing market forces -- chiefly the inflows of foreign equity funds and Taiwan's fat trade surplus amid scorching demand for its high-technology exports.

Foreign funds were again net buyers in the stock market on Friday, taking on a net T$4.559 billion. That brought to T$24.625 billion (US$798 million) the cumulative total over five consecutive sessions of net buying.

For Saturday, dealers expected a trading range of T$30.83-T$30.9.-Reuters