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Indian rupee

BOMBAY: The Indian rupee ended slightly weaker on Thursday amid light dollar bids on account of short-covering, dealers said.

Forward dollar premiums ended sharply lower after the heavy receiving buy-sell swaps in afternoon trade following the Reserve Bank of India (RBI) Governor Bimal Jalan's comments on a reduction in interest rates, dealers said.

The rupee ended at 43.5975/605 per dollar compared with its previous close at 43.585/59.-Reuters

Chinese yuan

SHANGHAI: China's yuan ended lower against the dollar on Thursday on technical selling, and dealers said the market ignored an overnight hike in U.S. interest rates.

The yuan closed at 8.2780 to one U.S. dollar against 8.2772 on Wednesday after moving in a range of 8.2700 to 8.2789.

"The yuan was pressured by technical selling after rises in the past two weeks," said a dealer at a foreign bank. "But the tightly controlled market did not respond to the Fed interest rate hike."

The U.S. Federal Reserve raised interest rates by a quarter point on Wednesday.

Dealers said the yuan was likely to move narrowly in thin trade on Friday, the last trading day before the Chinese Lunar New Year holiday.

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 7.6900 to 100 yen against 7.5928 on Wednesday. It ended higher against the Hong Kong dollar at 1.0530 to HK$1.0 from 1.0632.-Reuters

S Korean won

SEOUL: The South Korean won ended a touch higher against the dollar on Thursday as players squaring positions ahead of lunar New Year's holidays outweighed direct dollar-buying intervention led by the central bank, dealers said.

The won closed the day at 1,130.0 compared with Wednesday's close of 1,130.5.

It opened at 1,131.0 and moved between 1,127.4 and 1,131.5. "Most market participants wanted to square their dollar positions ahead of the holiday break," said a foreign bank dealer.

Players had built up greenbacks in line with the firm dollar/yen rate in overseas markets.

Dealers said the central Bank of Korea was seen buying dollars toward the end of the session as the won headed above the 1,130 level, pressured by steady dollar inflows from Korean and offshore players.

The state-run Export-Import Bank of Korea was also seen absorbing dollars from the market, dealers said. Players began to unwind dollars late on Wednesday on profit-taking following Wednesday's rise to a five-month high of 109.6 yen in Tokyo.

The six-month non-deliverable forward (NDF) won was quoted at 1,133/35 versus 1,132/33 on late Wednesday.-Reuters

Philippine peso

MANILA: The Philippine peso ended lower to the dollar on Thursday in step with the fall of the Thai baht, dealers said.

However, the local currency was off its day's low of 40.71 on market talk that the Philippine central bank sold dollars, one trader said.

The peso settled at 40.675 to the dollar from its previous 40.655. It opened at 40.57.

The Thai baht was quoted at 37.61/66 to the dollar in late trade on Thursday against 37.50/55 in early trade.

Dealers said the baht may have weakened in response to the 25 basis point rise in U.S. rates.

The peso and the baht track each other because the Philippines and Thailand compete in the same export markets.

Earlier, Philippine central bank deputy governor Amando Tetangco said it was unlikely short-term rates would be raised following the increase in U.S. rates.

Turnover at the Philippine Dealing System, the electronic network of the Bankers Association of the Philippines, surged to $240 million from the previous $155.1 million.-Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar on Thursday shrugged off a well-expected 25 basis point hike in U.S. interest rates, but failed to close higher as routine U.S. dollar commercial demand and overseas crude payments dragged down the local unit.

Dealers said in the absence of strong trading interest on the eve of the market shutdown for the four-day Chinese Lunar New Year holiday, the Taiwan dollar was easily pushed down by any U.S. dollar buying movements.

Looking ahead, dealers saw a relatively firmer trend, saying the Taiwan dollar should be able to rise in the face of persistent foreign fund inflows for Taiwan's sizzling stocks.

The foreign exchange market will reopen on Tuesday.

CLOSE: T$30.788 to the U.S. dollar, against Wedneday's finish at T$30.784. Smaller Cosmos market also closed at T$30.788 against Wednesday's T$30.785.

TURNOVER THROUGH DEALERS: relatively slow at US$268.5 million, well below Wednesday's US$549.5 million. Cosmos turnover also slipped to US$84 million from Wednesday's US$191 million. The Taiwan dollar rode out a 25-basis-point interest rate hike by the Fed, moving slightly higher in early trade.

The Federal Open Market Committee on Wednesday raised the fed funds rate to 5.75 percent from 5.50 percent, and lifted its less-used discount rate to 5.25 percent from 5.00 percent.

The Fed avoided a more aggressive 50-basis-point rate hike feared by some on Wall Street, but put financial markets on notice of possible further increases by warning that inflation was the biggest threat to the booming economy.

Dealers said the Fed's interest rate hike was not a concern in Thursday's trade as the upward adjustment was small and fell in line with most market's expectations.

But as pre-holiday Taiwan dollar cash demand eased sharply in the last day of trade, and foreign fund movements slowed down after Tuesday's holiday shutdown of the stock market, even small U.S. dollar bids would drag down the Taiwan unit, dealers said.

Taiwan stock market already closed on Tuesday and will be reopened on February 9.-Reuters