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Asian currencies

rate vs dollar

SEOUL: The won closed Wednesday's trading slightly higher on stop-loss dollar selling but lethargic and dull trading prevailed in the market throughout the day, dealers said.

"I'm really bored. This same tight range-bound trading has been going on for days," said a foreign bank dealer.

The won closed at 778.80 after being stuck at that level from 1:30 p.m. (0430 GMT). It opened at 779.00.

Dealers said both the upside and downside of the won have been limited due to fears of the central bank's intervention and fact that the market remained slightly long in dollars.

Dealers said many banks took a cautious attitude as 778.50 was the trigger mark for previous central bank intervention. They said there were also fewer than expected month-end exporter deals.

"Without the central bank's intervention, the greenback is unlikely to move actively by itself," said a local bank dealer. "The dollar is expected to test 778.30 or 778.40 won level tomorrow. But intervention will materialise only after the dollar falls to 778.00."

Dealers forecast the won would move in a 778.00-779.00 range on Thursday. Tomorrow's mid-rate is expected to be pegged at 778.90 or 779.00 against 779.00 today.

CHINESE YUAN

SHANGHAI: The Chinese yuan closed little changed at 8.3305 on Wednesday from Tuesday's 8.3304 against the US dollar on the Shanghai-based China interbank foreign exchange market.

The yuan opened flat at 8.3304 and was stuck in a narrow range of 8.3300 and 8.3305 for most of the session, hitting an intra-day high of 8.3295 and a low of 8.3317. Trading was active late in the session with most done at about 8.3305.

Traders said the yuan met strong resistance at the 8.3300 level, which made it unable to end up despite heavy buying.

"Even buying was heavy, the yuan failed to break through the resistance," said one trader. A second trader said the central bank intervened to prevent the yuan to close above 8.3300.

Dealers expected the yuan to move around the 8.3300 level on Thursday.

The yuan closed down at 7.8000 from 7.7800 against 100 Japanese yen and up at 1.0761 from 1.0772 against the Hong Kong dollar.

TAIWAN DOLLAR

TAIPEI: The Taiwan dollar eased at the close on Wednesday in response to a firmer US dollar overseas, dealers said.

The local unit ended at T$27.190, up from an intra-session low of T$27.205, against one US dollar compared with Tuesday's T$27.170 close. Turnover was US$284 million.

The central bank offered US dollars in morning trade to support the local unit but US dollar demand turned strong in the afternoon, reflecting the trend abroad. "The market will continue to focus on overseas markets," said one dealer. A T$27.15-25 range was seen in coming sessions.-Reuter