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Indian rupee

BOMBAY: The Indian rupee ended slightly firm on Wednesday as enhanced dollar supplies from the weekend lent support, dealers said.

Foreign investor payments comprised most of the dollar inflows from the weekend, they said.

The rupee ended at 43.55/555 per dollar after opening at 43.58/59 and compared with Tuesday's close of 43.5775/5825.

"Banks' nostro accounts did not reflect the dollar credits until Tuesday evening because of the extended weekend in U.S. markets and we are seeing the (dollar) supplies of four days coming in today," said a dealer at a European bank.

"Besides, the usual Wednesday sales are also resulting in some firmness," he said.

Banks normally sell dollars on Wednesdays and square up by the weekend to take advantage of high weekend premiums.

Premiums continued their southward journey on expectations the Reserve Bank of India (RBI) may cut banks' cash reserve ratio, dealers said.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah weakened through 7,300 to the dollar on Wednesday on offshore dollar buying amid worries religious violence could spread to Jakarta.

The rupiah was quoted at 7,315/7,345 versus the dollar from 7,250/7,280 late on Tuesday.

Muslim riots this week in the resort island of Lombok, following months of bloody clashes between Christians and Muslims in the Moluccan spice islands, rattled the market.

On Wednesday, about 150 Muslims staged a peaceful rally outside Vice-President Megawati Sukarnoputri's palace in Jakarta calling for an end to the violence in the spice islands.

"Offshore players are mostly on the buy side, state banks are mixed, buying and selling. But the overall sentiment is bearish on the rupiah because of the riot worries," a U.S. bank dealer said.

Another bank dealer said more dollar buying emerged after the market broke through 7,300 about noon.

"The market had broken the 7,300 level several times earlier this month but failed to hang on to the level for long. This time, the rupiah is likely to stay at this level or even weaken further because of the riot worries," the bank dealer said.

Dealers said concerns over the riots had depressed recent enthusiasm over U.S. Treasury Secretary Lawrence Summers' two-day visit and the new budget on Thursday. Summers arrives in Jakarta late on Wednesday night as part of an Asian tour.

The riots erupted in Lombok on Monday after a Muslim rally urging an end to Christian-Muslim bloodshed in the far eastern Moluccas, also known as the spice islands, turned violent.

The violence lasted through Tuesday, when hundreds of people roamed the island capital Mataram and the nearby town of Ampenan, looting and burning property owned by Christians and ethnic Chinese within a few kilometres of the main tourist area.

Lombok was tense on Wednesday.

Meanwhile, Bank Indonesia said 7.3 trillion rupiah of funds matured early on Wednesday. The benchmark overnight interbank rate was stable at around 9.5 percent.-Reuters

Chinese yuan

SHANGHAI: China's yuan ended slightly lower against the dollar in thin trade on Wednesday with bank traders reluctant to build heavy positions as the Chinese Lunar New Year approaches.

The yuan finished at 8.2798 to one US dollar from 8.2792 on Tuesday after moving in a narrow range of 8.2794 and 8.2800.

"The loss today did not represent a trend," said a local bank dealer. "Trading was dominated by sporadic needs for foreign exchange as bank traders were reluctant to build heavy positions ahead of the Spring Festival.

The Spring Festival, as the lunar new year is called in China, falls on February 5 this year. The foreign exchange market is usually closed for about one week for the holiday, although a timetable has yet to be announced.

Dealers said domestic banks usually needed more yuan for staff bonuses and other uses ahead of the festival and this would give the yuan support.

It was likely to mainly move in a narrow range between 8.2785 to 8.2795 ahead of the lunar new year, they said.

The yuan closed higher against the Japanese yen at 7.8920 to 100 yen against 8.0300 on Tuesday.

It ended higher against the Hong Kong dollar at 1.0645 to HK$1.0 from 1.0651. -Reuters

S Korean won

SEOUL: The South Korean won weakened against the dollar on Wednesday as offshore players stepped up dollar positions in the hope for near-term strength in the currency, dealers said.

The won ended the day at 1,132.5 to the dollar versus Tuesday's close of 1,127.0. The local currency started off at 1,129.0 and ranged between 1,126.0 and 1,132.5.

"With the central bank echoing the Finance Ministry's views on exchange rate, players turned cautious increasing their dollar holdings," said a dealer at a domestic bank.

The Bank of Korea on Wednesday reaffirmed that the Bank was ready to take measures against any volatility in the domestic forex market.

Offshore dollar buying prompted interbank operators to believe short-term strength in the greenback and follow suit, dealers said.

With the greenback marching above 1,132 won, a bout of profit taking emerged which, coupled with corporate dollar sales, helped push the currency back lower, they said.

Foreign equity funds flowed into the market to boost the local unit but market participants were reluctant to unleash dollars aggressively as foreign investors scaled back their investments on Wednesday, said another dealer.

Foreign investors bought a net 24.89 billion won worth of local shares compared with 108.08 billion won on Tuesday.

Dealers said state-run banks remained in the market and soaked up the greenback whenever offers piled up.

They believed that monetary authorities were manipulating the exchange rate near the close through state-run Gas Corporation which bought dollars.

The won/dollar pair is likely to remain weak on Thursday as offshore and onshore players are expected to stay on dollar-buy side, dealer said.

In non-deliverable forward market, the six month won stood at 1,129/30 versus 1,122/24 late Tuesday.

The one-year won was quoted at 1,134/37 versus 1,128/31. -Reuters

Philippine peso

MANILA: The Philippine peso lost ground at the close on Wednesday following the fall of other regional currencies.

The local currency settled at 40.695 per dollar from the previous 40.605. It opened at 40.56 and hit a day-low of 40.70 in late trade.

"There is (dollar) demand from offshore players in the afternoon due to negative sentiment in the region, particularly on talk of riots in Indonesia," said one trader.

Jakarta stocks plunged 4.3 percent at the close on Wednesday and the rupiah weakened on rumours religious violence had hit the capital. Police, however, dismissed the rumours. -Reuters