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Indian rupee

BOMBAY: The Indian rupee ended weaker on Tuesday after large dollar purchases by a local firm, dealers said.

The rupee ended at 43.53/5325 per dollar compared with its previous close at 43.495/50.

Dealers said a large petrochemicals firm cancelled export bookings for maturities from July to September causing premiums to rise and the spot rupee to weaken gradually.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah was steady in thin late trade on Tuesday as players closely watched developments in the financial situation of the country's central bank, Bank Indonesia.

The rupiah was quoted at 7,030/7,050 against the dollar compared with 7,080/7,110 in early trade.

"The market simply ignores other news except for the developments regarding Bank Indonesia. Trading is also thin because the holiday mood is still there and the Eid-ul-Fitr celebration is only days away," said one trader in Jakarta.

Finance Minister Bambang Sudibyo said on Tuesday some of the bonds to recapitalise Bank Indonesia would be issued overseas.

"No problem," Bambang told a new conference when asked whether there were plans to sell part of the issue overseas.

On Monday, the International Monetary Fund said it was working to complete a strategy by mid-January to help Bank Indonesia.

Last week, a critical state audit of the central bank suggested its finances were so problematic it might need to be recapitalised.

Dealers said the market shrugged off news President Abdurrahman Wahid was expected to reshuffle his two-month old cabinet after the Muslim fasting month of Ramazan ends on Friday.

Palace sources told Reuters nine names had been submitted to Wahid to be replaced, including that of former armed forces chief and current Coordinating Minister for Politics and Security General Wiranto. -Reuters

Chinese yuan

SHANGHAI: China's yuan closed little changed against the dollar on Tuesday, supported by a top Chinese official saying there was no reason for the currency to be devalued any time soon, dealers said.

The yuan finished at an intraday low of 8.2800 to one U.S. dollar against 8.2799 on Monday. It touched a high of 8.2796.

State Development Planning Commission chief Zeng Peiyan told a new conference on Tuesday he saw "no reason at all" for the yuan to be devalued in the near future.

He cited a healthy 1999 trade surplus of $30 billion as a major reason for the yuan to remain stable.

"Zeng's remarks were believed to be an indication of the central government's policies regarding the yuan this year," said a local bank dealer.

"His re-affirmation that the yuan was unlikely to be devalued gave sentiment towards the yuan a boost."

The yuan has been on a downward trend since the last few weeks of 1999, under pressure from increased dollar demand around the end of the year, dealers said.

But the yuan was likely to stabilise in the near term to move in a narrow range between 8.2790 and 8.2800, they said.

The yuan closed higher against the Japanese yen at 8.0710 to 100 yen against 8.1300 on Monday.

It ended slightly higher against the Hong Kong dollar at 1.0644 to HK$1.0 against 1.0647. -Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar rang in 2000 with a surprise rally of nearly 80 Taiwan cents on Tuesday and would have ended even higher were it not for what dealers called muscular last-minute intervention by the central bank.

Dealers said heavy inflows of foreign equity funds ignited broad U.S. dollar selling by increasingly panicky exporters that accelerated through the day as the central bank showed no signs of trying to halt or even slow the sharp rise.

Dealers said the bank finally tried to put on the brakes in the final hour -- but did not slam them hard.

CLOSE: T$30.602 to the U.S. dollar, a T$0.793 rise compared to December 30, the last trading session of 1999, when it closed at T$31.395. The Taiwan unit has not seen a higher close since ending at T$30.45 on November 5, 1997.

In one of the most volatile days in years, the Taiwan dollar surged from the open with little or no central bank interference, ranged as high as T$30.501, a T$0.894 intraday rise, then slipped back below T$30.6 in the final hour on what dealers said was aggressive U.S. dollar buying by the central bank.

The final quarter hour brought fresh fireworks as the rate surged anew to hit T$30.502, only to give up a full 10 Taiwan cents to presumed intervention in the final seconds of trade.

In more typical times, the Taiwan dollar rarely moves more than two or three cents in a single day, yielding to the central bank's unspoken volatility limits.

TURNOVER THROUGH DEALERS: Extremely heavy at US$1.033 billion, the third-biggest session on record and the biggest since a US$1.051 billion session on August 16. Thursday's turnover was a more typical US$448 million. -Reuters

Philippine peso

MANILA: The Philippine peso closed at a 17-week high on Tuesday due to capital inflows from foreign funds and banks reducing their overbought dollar positions.

The peso ended at 39.77 to the dollar, its highest level since 39.74 on September 6. It closed at 39.98 on Monday. Trades on Tuesday ranged from 39.93 to 39.74.

"It's a combination of investment and probably speculative inflows from foreign funds, and banks finishing off long dollar positions," a dealer with a foreign bank said. Dealers said the peso also benefited from the overall positive sentiment on regional currencies.

"Foreign banks were the ones selling aggressively today, regional currencies are appreciating so all factors are for the peso to appreciate," a dealer with a local bank said.

Some of the fund flows could have gone to the equities market, which has risen nine percent over the past seven trading sessions, dealers said.

The 33-share main index rose 11.41 points on Tuesday to close at 2,153.18, backed by gains in blue-chip Philippine Long Distance Telephone Co.

"The market has been going up for the last few sessions and that could be an indication that foreign funds are coming in," the foreign bank dealer said.

Dealer said banks that had taken long dollar positions due to Y2K-related concerns were also now aggressively selling since the rollover to the year 2000 did not affect computer systems.

"With this kind of situation, hardly any bank would take a long position at this point," another local dealer said.

Dealers maintained the peso's immediate resistance level at 39.70 to the dollar. Banks tried to test this level late in the session, but dealers said it held because of dollar-buying which emerged.-Reuters

S Korean won

SEOUL: The South Korean won ended higher against the dollar on Tuesday, surging to its strongest level since late November 1997 on heavy dollar sales by both local and offshore players, dealers said.

The market ignored direct intervention by state-run banks and repeated warnings from the Ministry of Finance and Economy, they said.

The won closed at 1,122.5 compared with its previous close on December 30 at 1,138.0.

It opened at a day low of 1,135.0 and hit a high of 1,122.0.-Reuters