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Indian rupee

BOMBAY: The Indian rupee ended on a steady note on Friday and dealers said though there were good export remittances during the day, dollar demand from a state-run bank prevented the rupee from firming.

"Diamond exporters brought in their remittances, but the demand from the state-run bank prevented any strengthening of the rupee," a dealer said.

The rupee ended at 43.5725/575 per dollar after it opened at 43.57/58 and compared with Thursday's close of 43.57/575.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah was steady in thin afternoon trade on Friday, with caution over political instability sidelining many players.

The rupiah was quoted at 7,260/7,290 against the dollar, compared with 7,265/7,285 in early trade and 7,270/7,300 in late local trade on Thursday.

Dealers said the rupiah could close in on 7,200 on Monday if there were no further outbreaks of bloody Christian-Muslim fighting over the weekend.

But the rupiah will still find it difficult to break through 7,200 because of lingering concern about further unrest, they said.

"Investors were cautious as rumours circulated that riots may emerge in Jakarta or other regions during the weekend," a dealer with a foreign bank said.

After fresh communal unrest during the week, forcing thousands of foreigners and refugees to flee the tourist island of Lombok, the prospect of further violence overshadowed optimism over Thursday's well-received budget and the new letter of intent with the International Monetary Fund.

The market was also encouraged by US Treasury Secretary Lawrence Summers' comment on Thursday that international financial institutions were ready to pledge up to $10 billion for Indonesia over the next three years.

Meanwhile, Bank Indonesia said 6.4 trillion rupiah in funds matured early on Friday. The benchmark interbank overnight rate hovered at around 9.25 percent.-Reuters

Chinese yuan

SHANGHAI: China's yuan ended slightly higher against the dollar on Friday due to increased demand from domestic banks ahead of the Chinese Lunar New Year, which falls on February 5.

But trade remained thin as banks were reluctant to build heavy positions ahead of what is expected to be a long holiday to celebrate the event, dealers said.

The yuan finished at an intraday high of 8.2792 to one US dollar from 8.2795 on Thursday after moving in a narrow range. It touched a low of 8.2799.

"Light demand from domestic banks pushed the yuan slightly higher," said a domestic bank dealer. "But the rise did not represent a trend."

Dealers said domestic banks usually need more local currency for staff bonuses and other uses ahead of the Lunar New Year.

But they were unlikely to build heavy positions as the foreign exchange market is usually closed for about one week during the period.

China's central bank governor Dai Xianglong said on Thursday a favourable balance of payments would keep the yuan stable this year but dealers said his remarks had no impact on trading as other senior officials had made similar comments previously.

The yuan was likely to move in a narrow range between 8.2785 to 8.2795 ahead of the Lunar New Year holiday, dealers said.

It closed higher against the Japanese yen at 7.7790 to 100 yen against 7.9743 on Thursday.

It ended higher against the Hong Kong dollar at 1.0637 to HK$1.0 from 1.0647.-Reuters

S Korean won

SEOUL: The South Korean won closed weaker on Friday after the local currency was battered by dollar-buying intervention and late news that Nara Investment Banking had been ordered to halt operations for three months, dealers said.

The won closed at 1,128.0 per dollar against Thursday's close of 1,125.5.

It opened at 1,127.0 and moved between 1,125.0 and 1,131.0.

The won fell to a session low of 1,131 during the morning due to government intervention, dealers said.

The won recovered as exporters began taking advantage of the dollar's rise to unload dollar holdings.

"But dollar buying emerged again as the financial markets were shaken by an announcement that authorities had ordered Nara Investment to suspend business," said a local bank dealer.

Dealers said dollar buying by state-run banks was estimated at $50 million to $100 million.

The Financial Supervisory Commission ordered Nara to halt operations for three months beginning on Saturday toward the close of the currency market.

An FSC statement said Nara was in serious financial trouble and unable to meet deposit withdrawals from clients. Dealers said the won-dollar rate would range from 1,115 to 1,135 next week with not much changes in sentiment.

"The impact of Nara Investment would be short-lived," said a dealer at a foreign bank. "Troubles in the merchant bank have been known in the market for a long time and the suspension of the company's operations was anticipated."

Foreign stock buying, estimated at a net 85 billion won, continued to put upward pressure on the won, dealers said..

Dealers said this inflow of dollar from foreign investors and the subsequent won buying from stock purchase forced some local banks to unwind dollar positions.

The yen's strength against the dollar also helped drag the dollar lower from an early high.

The yen was 104.80/104.83 against 105.33/36 in late Tokyo trading on Thursday.

In non-deliverable forward trading, the six-month won closed at 1,129/31 and the one-year won was quoted at 1,134/36. -Reuters

Philippine peso

MANILA: The Philippine peso ended flat in a lightly traded market on Friday in step with other regional currencies.

After trading within a 4.5-centavo band, the local currency ended at 40.645 to the dollar from the previous 40.64. It opened at 40.63.

Turnover fell to $95.2 million from the previous $204.30 million.

"We took a cue from the stability of other regional currencies," said one trader. A dearth of corporate demand for the dollar also helped the peso, he said.

Banks, however, were also holding on to their dollars due to political uncertainties on the local front.

Accusations by the head of the Securities and Exchange Commission that President Joseph Estrada meddled in a probe on the sharp rise and fall of gaming firm BW Resource Corp "clouded the credibility of the president," a second trader said.

Estrada has denied the accusation.-Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar finished firmer on Friday as foreign funds extended their buying spree in Taiwan stocks for an 11th session and the closely-watched Japanese yen gained in oversease trade.

Dealers said the central bank, which kept the Taiwan dollar in a tight range in the past few sessions, appeared to have eased its hold on the local unit's uptrend, but noted heavy US dollar buying by the central bank around the T$30.818 level.

CLOSE: T$30.821 to the US dollar, up from Thursday's close at T$30.832. On the smaller Cosmos exchange, the Taiwan unit finished at T$30.817 against T$30.828 on Thursday.

TURNOVER THROUGH DEALERS: Fairly active at US$374 million, more than double Thursday's slim US$170 million. Cosmos turnover fell to US$67 million from US$84 million on Thursday.-Reuters