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Indian rupee

BOMBAY: The Indian rupee ended a bit firm on Tuesday on dollar inflows from exporters, dealers said.

One technology firm and several textile firms brought in their export remittances which was absorbed partially by demand from a state-run oil firm, they said.

The rupee ended at 43.5825/5875 per dollar, after it opened at 43.60/61 and compared with Monday's close of 43.605/615.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah was largely unchanged on Tuesday amid high level efforts to calm unrest in the country's troublespots.

The rupiah was quoted at 7,300/7,330 against the dollar compared with 7,280/7,330 in late local trade on Monday.

President Abdurrahman Wahid visited the rebellious province of Aceh in the west and Vice-President Megawati Sukarnoputri the bloodied spice islands in the far east.

"The market remains unmoved by the peace visits. The problems there are just too complicated," one foreign bank dealer said.

Dealers welcomed the latest efforts to calm tensions, but remained cautious because a similar visit to the spice islands in December was followed almost immediately by some of of the worst killings in the year-long Christian-Muslim fighting.

Dealers said volume remained thin as players awaited U.S. Federal Reserve Chairman Alan Greenspan's congressional testimony at 1500 GMT.

Players would want to see how the U.S. asset markets react to Greenspan's testimony before making their next moves.

Dealers said the rupiah could head towards the 7,400 mark, with reasonable support seen at 7,250 provided nothing surprising coming out of Greenspan's testimony.

Meanwhile, Bank Indonesia said 5.3 trillion rupiah in funds matured on Tuesday. The benchmark interbank overnight rate hovered around 9.5 percent for local banks and 9.375 percent for foreign banks.-Reuters

Chinese yuan

SHANGHAI: China's yuan ended up against the dollar on Tuesday as buying by domestic banks mounted before the Chinese Lunar New Year holiday, dealers said.

The yuan finished at 8.2785 to one U.S. dollar against 8.2790 on Monday after moving in a narrow range of 8.2784 and 8.2793.

"Yuan buying by local banks was active today as demand increased ahead of the Lunar New Year holiday," said a dealer at a foreign bank.

Dealers said local companies needed more yuan for staff bonuses ahead of the Lunar New Year, which is also traditionally a period of heavier spending.

But domestic banks were unlikely to build heavy positions ahead of the long holiday, they said.

The yuan was likely to move in a range of 8.2785 to 8.2795 ahead of the holiday, dealers said.

News that China's national foreign exchange market has approved its first rural credit cooperative member had little impact on trading on Tuesday, they said.

The China Foreign Exchange Trade System would allow the Shenzhen Rural Credit Cooperative to buy and sell foreign exchange, the official Shanghai News reported.

Market officials confirmed the move but said the overall impact on trading would be limited as the volume of new business was expected to be slim.

The yuan closed higher against the Japanese yen at 7.8300 to 100 yen against 7.8782 on Monday. It ended lower against the Hong Kong dollar at 1.0644 to HK$1.0 from 1.0637. -Reuters

S Korea won

SEOUL: The South Korean won closed lower against the dollar on Tuesday as dollar demand from offshore players triggered banks to cover their dollar shorts in late afternoon trade, dealers said.

The won closed at 1,127.1 compared with Monday's close of 1,124.0.

It opened at 1,125.0 and moved between 1,124.7 and 1,127.9. "Interbank operators covered their short dollar positions on overseas dollar demand after the greenback was seen supported strongly at 1,125 won," a foreign bank dealer said.

The won was in a tight range around 1,125 as dollar inflows from export deals and foreign equity investors were quickly absorbed by banks, which built up dollar holdings in anticipation of the greenback's further rise.

Dealers said the Korean currency had been under downward pressure throughout the day due to the big slump in local stocks.

The Seoul bourse opened more than two percent lower on Tuesday due to sharp declines in U.S. equity markets overnight.

Currency traders appeared to believe it would be difficult for the won to strengthen above the 1,120 won level particularly after a forecast by economic ministers of a dwindling trade surplus this year.

The Commerce Ministry said on Tuesday South Korea's economic ministers shared the view that the country's trade surplus in 2000 would likely fall to about $12 billion from $24.5 billion in 1999.

January's trade balance is showing a deficit so far but is expected to be "near even" for the month, the ministry said, adding that a trade surplus is expected from February.

"The market's consensus is that the won will not go above 1,120 for the time being," a local bank dealer said.

Dealers expected the won to move between 1,125 and 1,130 per dollar on Wednesday.

The six-month non-deliverable forward (NDF) won was quoted at 1,126/27 versus 1,125/27 late Monday.

The one-year won stood at 1,130/32 against 1,128/31.-Reuters

Philippine peso

MANILA: The Philippine peso finished a shade firmer on Tuesday on heavy volume as banks, led by foreign institutions, cut long dollar positions on the back of new central bank rules on foreign exchange transactions.

The peso closed at 40.445 against Monday's 40.49. It opened at 40.46 and rose to a high of 40.35 after just one-and-a-half hours of trade.

Traders said the market squared off long dollar positions because of the new central bank rule.

"The new rules brought uncertainty, there were no details yet and the market was really long (on dollars) so they adjusted their positions," a trader from a foreign bank said. Central bank governor Rafael Buenaventura said the bank has approved a new circular detailing tighter rules on banks' reporting of dollar inflows and outflows. However, details are yet to be disclosed.

Volume surged to $337.10 million against Monday's $187.10 million, with the bulk due to banks passing on dollars to each other.

Some banks which cut long dollar positions bought back dollars later in the session after they went too short, traders said. Corporate clients also bought dollars when the peso firmed to the 40.35-40.40 level.

Dollar inflows meant for fixed investments also added to the market's volume, a trader from a foreign bank said.

Some offshore players also joined the dollar selling bandwagon.

"Some supply came from offshore, out of Singapore and Hong Kong," one trader said.

The local currency is likely to return to the 40.50 level on Wednesday as some banks which went short on dollars are likely to cover their positions, traders said.-Reuters