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Indian rupee

BOMBAY: The Indian rupee ended Wednesday steady amid strong dollar supplies in year-end trade, dealers said.

The State Bank of India (SBI) absorbed most of the dollar supplies originating from corporate sales and banks offloading dollars for balance-sheet considerations, they said.

The rupee ended Wednesday at 42.43/4325 per dollar, unchanged from its previous close. "A lot of banks also sold dollars either expecting good supplies on Monday after the long weekend or offloading assets on the year-end," said one dealer with a foreign bank.

Banks are shut on April 2 for Good Friday and are closed to customers on Thursday for their annual book-closure.

The rupee ended the year 6.95 percent weaker against the dollar compared with its close of 39.48/49 on March 31, 1998.

Forward markets were also active on the last day of the financial year.

Dealers said the SBI received (buy-sell swaps) premiums heavily towards close of trade.

"The SBI must have received over $20 million, since it requires considerable volume for a two paise movement in near-term premiums," said one swap broker.

A French bank - amongst others - was actively paying (sell-buy swaps) cash-over-tom premiums which were quoted unusually high at 0.08/0.085 rupees over the five-day long weekend including the year-end, dealers said.

The six-month forward premium ended at an annualised 6.57 percent against Tuesday's 6.73.-Reuters

S Korean won

SEOUL: Dollar short-covering prompted by dollar purchases by state-run banks pushed the South Korean won KRW to close weaker to the dollar on Wednesday, dealers said.

The won ended at 1,227.0 per dollar, compared with Tuesday's close of 1,224.6. It opened at 1,226.0 and ranged between 1,224.0 and 1,227.5. The dollar, which was stuck in 1,225 and 1,226 won in early afternoon, rose to the day's high of 1,227.5, as state-run banks aggressively bought dollars, dealers said.

"The Export-Import Bank of Korea and the Korea Development Bank (KDB) were soaking up dollars from the market which was heavy with month-end export deals," said a foreign bank dealer.

Korea Development Bank official confirmed the dollar purchases but declined to reveal the amount. Exim Bank officials were not available for comment.

Dealers said local banks, who were expecting the dollar would fall below 1,225 won, immediately began buying the greenback upon seeing the state-run banks shore up the value of the dollar.

"Interbank operators were covering their short positions," said a local bank dealer. "They would need dollars to make interest payment for short-term loans due on April 7."

But the dollar fell back at the close because some exporters unloaded their dollar holdings, dealers said.

They said the yen/dollar movement did not affect the won/dollar movement, as the dollar was seen to be settled at a low 120 level in the afternoon.

Dealers said more export deals would be lining up on Thursday and local players would keep eye on further state-run bank dollar buying.

They said the market was not moved by the commerce ministry saying South Korea's trade surplus would fall to $2.2 billion in March from $3.68 billion a year ago.

"The market was moving because of the state-run banks," another dealer said.

The six-month non-deliverable forward (NDF) won was quoted at 1,233/36 per dollar, while the one-year stood at 1,239/41. -Reuters

Chinese yuan

SHANGHAI: China's yuan closed unchanged against the dollar in active trade on Wednesday but faced downward pressure from increased demand for dollars by local importers, dealers said.

The yuan finished at 8.2800 to one dollar, unchanged from Tuesday.

"Pressure on the yuan was heavy due to increased demand for dollars from domestic importers after their business picked up this month," said a dealer at a local bank.

"The yuan tested lower levels early in the session today but found support at the 8.2800 level," he said.

The local unit had been on a downward trend for the past two weeks as importers bought dollars, dealers said.

But the yuan had found firm support at 8.2800 and would move narrowly around current levels in the near term, they said.

The yuan hit an intraday high of 8.2797 on Wednesday and a low of 8.2807 with most business done at 8.2802, dealers said.

The weighted average price on Tuesday was 8.2800.

The yuan closed higher against the Japanese yen at 6.8610 to 100 yen from Tuesday's 6.8750. It ended higher against the Hong Kong dollar at 1.0680 to HK$1.0 from 1.0688.-Reuters

Philippine peso

MANILA: The Philippine peso softened against the dollar in range trading on Wednesday as it followed the movement of the yen, dealers said.

"The immediate reaction this morning was to buy dollars because of the yen decline, although later on there was not much demand," a trader at a foreign bank said.

The local unit weakened to 38.792 at the close from 38.775 on Tuesday. It reached a high of 38.77 and a low of 38.86.

Volume rose to $116.6 million from Tuesday's $86 million despite the half-day trade in preparation for the Easter holidays from Thursday to Sunday.

The peso reached its low in early trading when the yen reached 120.90 to the dollar, but regained some ground towards the close of the session when the yen was at 120.20, traders said.-Reuters

BD taka

DHAKA: The Bangladesh taka ended lower against the dollar in interbank trade which reopened on Wednesday after a five-day Moslem Eid al-Adha holiday as demand for the U.S. currency rose slightly on import related payments, dealers said.

"The taka became easier as the demand for the greenback rose a little bit due to import related payments," said one dealer with a foreign bank.

They said the taka finished at 48.6450/48.6500 per dollar against the previous close of 48.6400/48.6500.

Dealers said interbank call money rates closed lower at 6.75 to 7.50 percent against the previous closing level of 7.5 to 9.5 percent in a quiet market.-Reuters

Taiwanese dollar

TAIPEI: Persistent selling of the U.S. dollar for Taiwan dollar cash to pay employees and local bills on Wednesday reversed the Taiwan unit's slow fade, pushing it to a higher close, dealers said.

The Taiwan dollar opened slightly higher at T$33.143 to one U.S. dollar, but drifted lower almost immediately, reflecting the yen's relative weakness in Tokyo, dealers said.

The local unit maintained its downtrend, touching a low of T$33.177 before strong selling of the greenback emerged. It ended at T$33.143 against Tuesday's T$33.145 close.

Turnover through dealers was modest at US$391.5 million on the main market and US$143 million on the Cosmos market.

Dealers said the Taiwan dollar initially faced strong downward pressure, prompted by the yen's weakness in early Tokyo trade.

But demand for Taiwan dollar cash and the yen's rebound to 119.3 to the U.S. dollar from an early low of 120.6 cushioned the Taiwan unit's downside, dealers said.

"On the final day of the month, local firms needed to sell their U.S. dollar holdings to pay employees and various bills," a local bank dealer said.

Dealers said they detected that the central bank had briefly moved in to smooth the Taiwan dollar's downtrend -- an action they said was in line with its policy of keeping stability in the Taiwan unit.

Dealers foresaw a T$33.14-T$33.15 range for Thursday.

On the smaller Cosmos market, the Taiwan dollar ended at T$33.146 against Wednesday's T$33.170 close, having ranged between T$33.146 and T$33.178. -Reuters