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Indian rupee

BOMBAY: The Indian rupee ended steady on Tuesday despite bids for dollars from foreign investors making remittances, dealers said.

"Foreign institutional investors who have been selling in the (stock) market were there but steady supplies prevented any weakness in the rupee," a dealer at a private bank said.

The rupee ended at 43.5275/5325 per dollar after it opened at 43.52/525.

It had ended at 43.515/5225 on Monday.-Reuters

Chinese yuan

SHANGHAI: China's yuan closed slightly lower against the dollar in thin trade on Tuesday as banks were reluctant to trade amid a lack of fresh news, dealers said.

The yuan finished at 8.2795 to one U.S. dollar from 8.2793 on Monday after moving in a narrow range of 8.2794 to 8.2796.

"Trading was dominated by sporadic (dollar) demand amid the absence of new trading incentives," said a dealer at a local bank.

Dealers said the yuan has been under pressure from worries over China's entry into the World Trade Organisation, expected later this year, which was likely to lead to faster growth in imports than exports.

But the yuan was supported by the steady inflow of foreign exchange from China's trade surplus, which was estimated at $30 billion last year, they said.

Dealers said the yuan was likely to move in a narrow range of 8.2790 to 8.2800 in the short term.

The yuan closed higher against the Japanese yen at 7.8190 to 100 yen against 7.9308 on Monday. It ended unchanged against the Hong Kong dollar at 1.0640 to HK$1.0.-Reuters

S Korean won

SEOUL: The South Korean won closed sharply lower against the dollar on Tuesday with banks conducted short-cover dollar buying as the stock market consolidated, dealers said.

The won ended at 1,145.0 against Monday's close of 1,133.9. It opened at 1,135 and moved between 1,132 and 1,147.

Banks, which went short on the dollar in anticipation of dollar inflows from foreign equity investors since Monday, had to buy dollars in short-covering.

"As the stock market fell from Monday's rally, demand for dollars was on the rise," said a local bank dealer.

Dealers said the currency market would be volatile on Wednesday, with the won-dollar rate ranging from 1,135 to 1,150.

"It is possible some banks would build long positions as there still appears to be room for the dollar's rise," said a foreign bank dealer.

Dollar buying intervention by state-run banks in the morning gave a strong signal that the government was prepared to defend the 1,130 level. Dealers said sentiment was shaken after dollar inflows from settlements of Monday's foreign stock buying proved thin.

The currency market will closely trace the stock market for the time being, they said.

Some dealers said the yen's weakness against the dollar was also affecting the Korean currency.

The yen fell to 105.66/71 per dollar from about 102 at the beginning of this year.

In the non-deliverable forward market, the six-month won closed at 1,147/49, while the one-year won was quoted at 1,154/56.-Reuters

Philippine peso

MANILA: The Philippine peso finished weaker against the dollar on Tuesday after some offshore institutions hedged their local investments, dealers said.

"They just want to be exposed to the local currency," a trader said.

Investors are concerned the peso would come under pressure in the face of a possible hike in U.S. rates and lower local rates.

Corporate dollar demand thinned as the peso slowly fell to reach a day-low of 40.68 before closing at 40.67 compared to Monday's 40.30.

The peso had opened at 40.36 and reached a day-high of 40.34 in morning trade. The peso last reached a low of 40.75 on Friday.

"There's offshore demand because they feel the interest rate differential of the peso over the dollar is shrinking," said a trader from a local bank.

"Local interest rates are not exactly going to follow a hike in U.S. interest rates because it will depend on the market's liquidity," he added.

New Finance Secretary Jose Pardo said low interest rates were a priority but it has to balanced with the movement of the peso.

The six-month, one-year and two-year Treasury bond rates had all fallen in the auctions this week due to the high liquidity in the system.

The benchmark 91-day T-bill was unchanged at 8.898 percent at the auction on Monday because the central bank had placed a floor on the rate by selling three-month bills at 8.875 percent.

Turnover jumped to $257.80 million from Monday's $180.50 million.

Traders said the peso's slide may be capped at 40.75, it's most recent low, with the central bank expected to sell dollars.-Reuters