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Indian rupee

BOMBAY: The Indian rupee ended firmer compared to its previous close on Tuesday after dollar demand seen in the past few days, dealers said.

The rupee ended at 43.5975/6025 per dollar against the previous close of 43.625/63 after mostly trading in a firm range throughout the day.

Dealers reported large dollar sales by two foreign banks, which they said appeared to be at the behest of a corporate house.

Dollar demand was only under 43.60 levels," a foreign bank dealer said.-Reuters

Indonesian rupiah

JAKARTA: Indonesia's rupiah struggled to stay above 7,500 to the dollar on Tuesday amid growing concerns over souring relations between the government and the military and a possible hike in U.S. interest rates.

In early trade the rupiah fell briefly through the key support level of 7,500 to the dollar and dealers said that the currency is likely to break that level again soon amid strong overseas demand for dollars.

The rupiah was trading at 7,440/7,490 to the dollar compared with 7,395/7,415 in late local trade on Monday.

"Many overseas players are long of dollars so the rupiah is likely to remain weak for some time," said a foreign bank dealer.

Dealers saw the rupiah moving in a range of between 7,400 to 7,500 this week and possibly falling briefly through 7,500 amid the country's ongoing domestic worries.

They also said the dollar looked strong ahead of a U.S. Federal Reserve meeting beginning later on Tuesday which is widely expected to raise interest rates by 25 to 50 basis points.

But dealers said no significant movement is expected from the market if the meeting decided on a 25 basis-point hike.

Central bank governor Syahril Sabirin said on Tuesday he was still confident the currency would stabilise at between 6,000 and 7,000 to the dollar, blaming its latest drop largely on domestic political concerns.

The market was also eyeing the two-day Indonesian donors meeting in Jakarta. Indonesia is expected to win $4.2 billion to $4.7 billion in loan pledges at the meeting to help finance its budget deficit, dealers said.-Reuters

Chinese yuan

SHANGHAI: China's yuan ended up against the dollar at its highest closing level in over two months on Tuesday as domestic banks bought the currency before the Chinese Lunar New Year, dealers said.

Banks bought the yuan on demand from companies for funds to pay their workers year-end bonuses, dealers said. The festival season is also typically a period of heavy spending as residents celebrate by buying gifts and other goods, they said.

The yuan ended at 8.2775 to one U.S. dollar against 8.2778 on Monday after moving in a range of 8.2773 to 8.2785. It was the highest close since November 12, when the yuan also finished at 8.2775.

The yuan was likely to move around 8.2780 ahead of the holiday, dealers said.

The China Foreign Exchange Trade System will be closed from February 5 to February 11 for the holiday. Trading will resume on February 12.

The yuan closed lower against the Japanese yen at 7.7710 to 100 yen against 7.6525 on Monday. It ended marginally higher against the Hong Kong dollar at 1.0633 to HK$1.0 from 1.0635. -Reuters

S Korean won

SEOUL: The South Korean won ended weaker against the U.S. unit on Tuesday on dollar short-covering by banks following days of foreign stock selling and the firmer dollar versus the yen, dealers said.

The won closed the day at 1,126.7 to the dollar compared with Monday's close of 1,123.2.

It opened at 1,124.5 and ranged between 1,122.7 and 1,127.0. "While the market was largely seen long on dollars, some banks covered their dollar shorts after they saw foreign equity investors unload shares and the U.S. unit remain firm against the dollar," said a foreign bank dealer.

In the equity market, foreigners were net sellers of 113.6 billion won worth of shares on Tuesday. They sold a net 30.9 billion won the previous day.

The benchmark Korea Composite Stock Price Index closed down 15.13 points or 1.60 percent at 928.75 on Tuesday.

Dealers said the dollar/won pair could break the 1,130 level on Wednesday if the greenback strengthens above 108 yen.

In Tokyo, the dollar was quoted at 107.34/7.39, up from 107.17/7.22 earlier in the morning.

Seoul currency traders said sentiment also turned bullish after the commerce ministry announced South Korea posted its first monthly trade shortfall in January since October 1997.

The Ministry of Commerce, Industry and Energy said the nation's customs-cleared trade deficit stood at provisional $400 million in January, against a $629 million surplus a year earlier.

It said exports in January increased 32.1 percent year on year to $12.23 billion while imports jumped 46.3 percent to $12.63 billion.

"Many players appeared to see the turnaround in the trade balance as meaningful," said another dealer at a local bank. -Reuters

Philippine peso

MANILA: The Philippine peso finished barely changed on Tuesday with most regional currencies steady and banks hesitant to part with their dollars in anticipation of a hike in U.S. interest rates.

The peso finished at 40.56 to the dollar from Monday's 40.57. It traded within a tight five centavo range during the session.

"Most of the banks are bent on taking long (dollar) positions as a hedge if exchange rates do shoot up once the Fed rate hike is above expectations," said a trader from a local bank. The U.S. Federal Reserve meets Tuesday and Wednesday to decide on its key rates. A 25 basis point rise is expected by the market.

Total turnover narrowed to $155.60 million from Monday's $205.50 million, mirroring the same light volume in the equities market.

Volume at the stock market reached 1.59 billion pesos, with the main index falling 15.99 points to 1,973.44.

Traders said the peso would trade within a tight range of 40.50 to 40.60 on Wednesday.-Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar closed slightly firmer on Tuesday, taking heart from persistent inflows of foreign equity funds, though importers' bargain hunting and interbank shortcovering eroded early gains.

Dealers said they expected rangebound trade before the currency market closed on Friday for the four-day Chinese Lunar New Year holiday.

CLOSE: T$30.685 to the U.S. dollar, against Monday's finish at T$30.699. Smaller Cosmos market closed firmer at T$30.685 from Monday's T$30.692.

TURNOVER THROUGH DEALERS: Relatively active at US$419 million, down from Monday's US$432.5 million and well below Friday's very busy US$742.5 million. Cosmos turnover swelled to US$217 million from Monday's US$105 million. The Taiwan dollar opened slightly lower, echoing the yen's weakness overseas, but soon rose against the greenback on the back of foreign fund inflows and pre-holiday cash demand by exporters.

The U.S. dollar advanced above 107 Japanese yen in early Tokyo trade on Tuesday, compared with about 106 in Asian trade on Monday.

"Their importers' actions kept the Taiwan dollar from rising further," a dealer at a foreign bank said.

Dealers noted little intervention from the central bank in the face of relatively balanced supply and demand for foreign exchange.

They said they expected a T$30.65-70 trading range for Wednesday.

Foreign equity funds continued to show strong buying on Tuesday, purchasing a net T$1.549 billion in Taiwan stocks following Monday's net buying of T$1.294 billion.-Reuters