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Indian rupee

BOMBAY: The Indian rupee ended Thursday slightly weaker compared to its previous close after mostly trading in a tight range throughout the day, dealers said.

The rupee ended at 43.5975/6025 per dollar, a touch weaker compared to its previous close of 43.59/595.

Dealers said the rupee opened slightly weaker adjusting for the weekend carry costs, but remained steady in a very narrow range for the rest of the day.

"It was a quarter paise range throughout the day. The highest the dollar was dealt during the day was at 43.60 rupees," a broker said.

The country's largest bank, the State Bank of India SBI.BO, kept a steady bid throughout the day, dealers said.

There was some dollar demand from a New Delhi based corporate and a European bank, whereas supplies remained steady, dealers said.

Forward premiums opened slightly higher tracking higher call money rates but eased in afternoon trade as call money rates eased.

Call money rates ended Thursday at 9.0-9.25 percent, off the day's highs of 10.50 percent and compared to its previuous close of 9.75-10.0 percent.

The six-month premium ended at an annualised 3.52 percent against the previous close of 3.56 percent, off highs of 3.61 percent.-Reuters

Indonesian rupiah

JAKARTA: The Indonesian rupiah turned weaker on Thursday, with position squaring dominating thin trading ahead of the deadline for Astra International bidders to submit their final proposals.

The local unit was quoted at 7,455/7,465 to the dollar compared with around 7,425/7,445 in early trade and 7,435/7,455 at Wednesday's close.

"The market is almost dead, with position squaring dominating the thin market. Players are reluctant to open new positions ahead of the deadline for Astra's bidders," one large local bank dealer said.

Astra's bidders have to submit their bids on Thursday.

The Indonesian Bank Restructuring Agency (IBRA) announces at the weekend the winning bidder for a stake of around 43 percent in auto conglomerate Astra International, expected to fetch around $500 million.

Foreign exchange markets had been braced for the impact of a sudden conversion from the proceeds. The money is to be used to help bridge the budget deficit for the fiscal year that ends on March 31.

Bank Indonesia said 22.9 trillion rupiah in funds matured early on Thursday while 14 trillion rupiah was settled. Overnight rates still hovered at 9.25 percent for foreign banks and 9.5 percent for local banks.-Reuters

Taiwanese dollar

TAIPEI: The Taiwan dollar ended sharply higher against its US counterpart on Thursday as foreign funds continued to pour into the stock market, which rallied more than five percent over the day.

Dealers said the central bank seemed to loosen its grip on the local currency, which marked its third consecutive closing high on Thursday.

CLOSE: T$30.674 to the US dollar, up from T$30.711 on Wednesday. On the smaller Cosmos exchange, the Taiwan dollar finished at T$30.674 against its close of T$30.708 on Wednesday.

TURNOVER THROUGH DEALERS: moderate at US$438 compared to US$413 million on Wednesday. Cosmos turnover rose to US$167 million from US$146 million on Wednesday.

The Taiwan dollar opened a touch higher at T$30.709 to the US dollar and kept on rising, touching as high as T$30.672 on the back of persistent foreign equity fund inflows. Dealers said the stock market, which gained sharply in recent sessions as post-election worries eased, had sparked a wave of foreign fund inflows which pushed the Taiwan dollar through the T$30.7 threshold.

The benchmark TAIEX closed up 464.48 points, or 5.12 percent at 9,533.87.

Foreign funds were net buyers of T$4.289 billion in local equities on Thursday after buying a T$5.274 billion on Wednesday.

Dealers said the buoyant Taiwan dollar prompted exporters to trim their US dollar holdings and added further upward momentum to the local currency.

Dealers said they did not detect intervention by the central bank, which aimed to leave depreciative room for the local currency after the new administration took office.

President-elect Chen Shui-bian will assume office on May 20.

For Friday, dealers said they expected the Taiwan dollar to range between T$30.65 and T$30.72. -Reuters

Chinese yuan

SHANGHAI: China's yuan ended down against the dollar on Thursday as some institutions bought dollars on expectations China would raise interest rates on dollar deposits following the US rate increase.

The yuan ended at 8.2790 to one US dollar, the high end of a range of 8.2777 to 8.2790, against 8.2775 on Wednesday.

"Dollar demand increased from early this week. Some institutions might boost positions slightly because of the rate rise," said a dealer at a major local bank.

The US Federal Reserve raised its key funds rate by 25 basis points to six percent on Tuesday.

Dealers said the rate rise could point to a possible increase in interest rates for US dollar deposits in China. The one-year deposit rate is now 4.4375 percent.

The yuan could see weakness in the near term because of the interest rate pressure and falling foreign direct investment, they said.

China's actual foreign direct investment fell 14.25 percent year-on-year in February to $1.854 billion, the International Business Daily reported on Tuesday.

There was no sign of intervention by the People's Bank of China on Thursday, but dealers said the central bank would not sit on its hands if the yuan slipped through 8.2800.

The yuan also weakened against the Japanese yen to 7.7952 to 100 yen compared with 7.7522 on Wednesday. It ended lower at 1.0635 against the Hong Kong dollar from 1.0627. -Reuters

S Korean won

SEOUL: The South Korean won surged to finish at a 28-month high versus the dollar on Thursday as dollar supplies from foreign equity investors and exporters sparked stop-loss dollar sales, dealers said.

The won closed at 1,109.8 to the dollar, its highest finish since November 26, 1997.

It rose from a Wednesday close at 1,112.9.

The won opened at 1,114.0 and rose as high as 1,109.5 on the day.

"Almost all market factors pointed to a higher won today," said a foreign bank dealer. "Even the government appeared to be backing off from its current support level." The won has appreciated about 2.5 percent so far this year.

Dealers said players rushed to unload dollar holdings to stop losses after watching heavy inflows of dollars from foreign investors buying local stocks and from exporters settling contracts as the month end approached.

Foreign investors were net buyers of 180.9 billion won worth of shares on Thursday, notching an eighth consecutive session of net buying.

"Although the government said it would buy dollars worth $1.9 billion from the currency market, players seem to believe it will take time for the government to actually start to buy dollars," said a local bank dealer.

The Finance Ministry said on Thursday the government and financial organisations would need the dollars in early April to repay foreign loans and to purchase Daewoo Group bonds held by foreign investors.

Dealers said they expected that dollar buying to start early next week. -Reuters

Philippine peso

MANILA: The Philippine peso ended higher on Thursday, buoyed by investment flows and steady regional currencies, dealers said.

The local unit settled at 40.87 to the dollar against Wednesday's close of 40.895. Trading ranged from 40.84 to 40.895 to the dollar. Volume rose to $252.60 million from $240.6 million.

"I think its Sunlife or the NTT-Smart deal," a dealer from a foreign bank said, referring to the inflows. Another trader said the inflows could have been about $100 million. Of that amount, at least $50 million were sold to other banks.

NTT was expected to infuse $360 million into Philippine Long Distance Telephone Co (PLDT) within the month in connection with the merger of cellular phone operator Smart Communications Inc with PLDT.

Sun Life Financial Services Inc will be listing its shares on the Philippine Stock Exchange on Friday, along with the stock's launch on the Toronto, New York and London bourses.

Traders also said the peso also took its cue from other regional currencies, especially the Thai baht which is up on market talk that Moody's Investors Service might soon upgrade Thailand's rating.

The Thai baht was quoted at 37.70/37.75 to the dollar in late afternoon trade against 37.74/37.79 in early trade.

The peso sometimes follows the baht because the Philippines and Thailand compete in the same export markets.

Despite the inflows, the peso did not breach the 40.80 immediate resistance level as commercial demand came in at the 40.85 to 40.87 levels.

The dollar demand was coming mostly from oil companies hedging their oil imports.

"It's been a long time since the peso stayed below the 40.90 level," the second trader said.

Traders said the peso might still test the 40.80 resistance level on Friday, while any downside would be capped at 40.90. -Reuters