20000311

Indian rupee

BOMBAY: The Indian rupee closed steady on Friday, off the day's low of 43.60 as exporters sold dollars in afternoon trade, dealers said.

The rupee closed at 43.5775/5850, marginally changed from opening levels of 43.5775/5825 per dollar on Friday.

On Thursday, the rupee closed at 43.5750/5850.

"A large state-run bank and exporters sold dollars when the rupee touched 43.60. This took care of the sudden dollar demand earlier in the day," a dealer at a state-run bank said. -Reuters

Indonesian rupiah

JAKARTA: Indonesia's rupiah edged higher amid thin trade on Friday morning as most regional currencies gained ground against the dollar.

The rupiah was trading at 7,370/7,385 to the dollar compared with 7,385/7,390 in late local trade on Wednesday.

Some dealers said that there is still room for the rupiah to strengthen to the 7,360 level but in the short term the currency would float between 7,300 to 7,500.

"I don't think there is negative sentiment towards the rupiah. The currency is now within a comfortable position for both exporters and importers. That is why it has stayed within this level for the past weeks," said one dealer at a foreign bank.

Dealers said the market had ignored a comment by chief economic minister Kwik Kian Gie, who said that a fixed exchange rate is still an option.

Kwik said on Thursday that the government may impose a fixed exchange rate once the International Monetary Fund's bailout comes to an end.

"But the question is when do we stop depending on the IMF?" asked another foreign dealer.

Bank Indonesia Governor Syahril Sabirin forecast the currency would break the 7,000 level, but the comment had no influence on the currency.

"There is underlying dollar demand from the local players. Therefore we don't see the currency breaking the 7,000 level in the short to medium term," said the dealer. -Reuters

Chinese yuan

SHANGHAI: China's yuan closed slightly higher against the dollar on Friday on expectations of strong February foreign trade data.

The yuan ended at 8.2783 to one U.S. dollar from 8.2787 on Thursday after moving in a narrow range of 8.2782 and 8.2787.

The government is likely to announce February's trade data in the next few days and the market expects them to show a continued recovery of China's exports, dealers said.

"Local banks built fresh yuan positi against the Hong Kong dollar at 1.0631 to HK$1.0 from 1.0636. -Reuters

S Korean won

SEOUL: The South Korean won ended stronger against the dollar on Friday on renewed foreign buying of local stocks and the yen's strength, dealers said.

Foreign investors turned net buyers of 82.4 billion won of stocks, compared with a net selling of 299.7 billion won on Thursday, they said.

The won closed at 1,119.7 per dollar against Thursday's close of 1,122.4. It opened at 1,122.0 and ranged between 1,118.0 and 1,122.0.

The yen's rise against the dollar also added to the won's appreciation. The Japanese currency was quoted at 106.36/41 per dollar, compared with 106.65/68 late in Tokyo on Thursday and 107.07/09 late on Wednesday.Dealers said the state-run banks soaked up $150 million to halt the won's rise.

"The market was long in dollars at the start of trading today because of foreign stock sales on Thursday," said a foreign bank dealer. "But the government's intervention put the brakes on dollar unwinding, prompted by foreign stock buying and the yen's strength."

The dollar/won rate would move between 1,115 and 1,125 throughout next week with eyes on the trend in foreign investment in local stocks, dealers said.

They said the market today was exceptionally quiet as market players were retreating ahead of the weekend.

"With the exchange rate cooped up in a tight range, there were no incentives for speculative trading," said a local bank dealer. "There were only sporadic commercial settlements for exporters and importers." Dealers said the government's plan to purchase foreign debts of the troubled Daewoo Group would slow down the pace of the won's appreciation for the time being.

On Thursday, Finance Minister Lee Hun-jai said dollar demand stemming from the government's purchase of the group's foreign debt and the purchase of foreign debt held by the overseas branches of domestic banks would help stabilise the currency market, flooded with dollars from foreign stock investors.

In January, leading foreign creditors of Daewoo Group agreed to sell their unsecured loans amounting to $4.84 billion to South Korea's nationalised banks at 39 to 40 percent of face value.

Minister Lee did not specify when the debt will be purchased.

In the non-deliverable forward market, the six-month won was quoted at 1,121.0/22.5 against 1,124.0/1,125.0 late on Thursday. The one-year won was at 1,124.5/26.5 against 1,127.5/29.0.-Reuters

Philippine peso

MANILA: The Philippine peso finished firmer on Friday following gains in regional currencies against the greenback and with banks unloading dollars ahead of expected corporate inflows in the coming weeks, traders said.

The peso ended at 40.89 to the dollar against Thursday's close of 40.975. It swung to a low of 40.94 when some corporates bought dollars around the 40.90 mark.Turnover climbed to $206.80 million against the previous $181 million.

"Firmer regionals helped the peso, and there are expected capital inflows this month," said a trader from a local bank.

Some banks cut their long dollar positions, confident of a surge in dollar supply when Japan's Nippon Telegraph and Telegraph Corp infuses its $360 million equity investment in Philippine Long Distance Telephone Co later this month.

"The rumour is that inflow will be sold in the market," said a trader from a foreign bank.

Traders said the peso may range from 40.70 to 40.95 next week, with dollar demand seen strong at the 40.90 level.

"The 40.90 mark is a good level to buy," one trader said.-Reuters