Sunday, October 22 11:09 AM SGT

Asian currencies falter amid gloomy outlook HONG KONG, Oct 22 (AFP) - Most Asian currencies fell over the past week, with the widely-watched Japanese yen drifting lower against the dollar amid worrying corporate bankrupcty data and a late rally in US stocks, and the beleaguered Australian and New Zealand dollars toppling to record lows over the week.

The Philippine peso also hit a record low during the week, affected by allegations Philippine President Joseph Estrada received huge payoffs from operators of illegal gambling rackets.

JAPANESE YEN: The yen drifted lower against the dollar over the past week, dampened by gloomy corporate bankruptcy data and a rally in US shares toward the end of the week.

The Japanese unit stood at 108.54 to the dollar late Friday, down from 107.72 to the dollar a week earlier.

The yen opened the week lower as private credit research agency Teikoku Databank reported the number of corporate bankruptcies in September rose 9.5 percent from a year earlier. The yen fetched 108.09 to the dollar late Monday.

After moving narrowly around the 108 mark, the Japanese unit tumbled on Friday after US share prices rebounded strongly.

"A sense of security is spreading towards dollar buying," said a dealer at Mitsubishi Trust and Banking Corp. The closely-watched Wall Street rally also boosted Tokyo stocks but the gains were not seen as a reason to buy the yen, dealers said.

"There may be a chance eventually that the yen may begin to appreciate more tangibly, as the Japanese equity market may emerge as an alternative investment target for global portfolio managers, given the solid earnings recovery," said Yasuji Yamanaka of Nikko Trust and Banking Co. Ltd.

"But in the near-term, the dollar/yen is not likely to move out of the 105-110 yen trading range as the Japanese market is expected to continue to track the US trading pattern."

AUSTRALIAN DOLLAR: The Australian dollar is likely to continue languishing in the doldrums, increasing pressure on the central bank here to raise interest rates, or risk an inflationary outbreak, economists warned.

The Aussie dollar dipped to a series of new lows in quick succession during the past week, and has now lost more than 20 percent of its value against the greenback so far this year.

The battered Aussie, which bounced sharply Friday, came to rest at 52.79 US cents at the close of trading after gaining almost a cent.

It closed last week at 53.03, before sinking below the 52-cent barrier in a pummelling also experienced by the euro.

"It got a bit of a lift this morning with a lot of people buying the euro," IBJ Australia foreign exchange manager Steve Chater said of Friday's bounce.

"It's been a pretty good day with some offshore buying, fresh buying coming in the market."

ComSec chief economist Craig James said that despite the rise, investors were unlikely to develop an appetite for the Australian dollar in the coming week.

"The weak Australian dollar will remain a source of inflationary concern for the Reserve Bank," James said.

Although there is little support for the notion that the dollar is out of the woods yet, there is some basis for speculation it may stabilise.

"There seems to be a bit of a feeling that there's a base formed in the Aussie and possibly the euro as well with today's price action," MMS Standard and Poor's Glen Bull said.

NEW ZEALAND DOLLAR: The New Zealand dollar closed the week at 39.97 US cents, down from the close of 40.23 cents a week earlier, but up on its midweek record lows.

One currency dealer said it was a key day for the kiwi and he did not expect it to set a new low again in the medium term.

"More than just a nice solid up-day, I think we can say that in place we have a medium-term low for the New Zealand dollar. I don't think it's going to make a new low for some time," he said.

On Thursday it touched a new low of 38.95 cents.

SINGAPORE DOLLAR: The US dollar was at 1.751 Singapore dollars in late trade here Friday from 1.7534 Singapore dollars a week ago.

HONG KONG DOLLAR: The dollar traded slightly lower at 7.7966-7.7976 to the greenback compared with the previous week's 7.7958-7.7963.

INDONESIA RUPIAH: The Indonesian rupiah closed the week slightly firmer at 8,888 to the dollar Friday, compared to 8,950 against the greenback a week earlier.

PHILIPPINE PESO: The Philippine currency closed at 48.74 pesos to the dollar on Friday from 48.50 pesos to the dollar on October 13, amid allegations Philippine President Joseph Estrada received huge payoffs from operators of illegal gambling rackets.

The currency fell to a record low of 49.00 to the dollar on October 16 before recovering later in the day.

SOUTH KOREAN WON: The won weakened slightly from 1,128.1 won per dollar a week earlier to 1,129.10 to the greenback Friday.

TAIWAN DOLLAR: The Taiwan dollar slipped 0.5 percent against the greenback over the week to close at 32.090 on Saturday in line with movements in the stock market, dealers said.

The currency closed at 31.990 Monday and lost grounds to breach the 32 level to end at 32.260 Tuesday. It dropped to 32.383 Wednesday and finished at 32.325 Thursday. The unit rebounded to end Friday at 32.143.

THAI BAHT: The Thai baht slid against the dollar amid uncertainity ahead of elections, a fragile economic recovery and fluctuating oil prices, dealers said.

The Thai baht closed Friday at 43.60-63 baht to the dollar compared to the last week's close of 43.55-58.

burs/mfb/sb

http://asia.dailynews.yahoo.com/headlines/business/article.html?s=asia/headlines/001022/business/afp/Asian_currencies_falter_amid_gloomy_outlook.html

-- Carl Jenkins (Somewherepress@aol.com), October 22, 2000

Answers

These currency slides can't continue without, somewhere along the line, promoting capital flight that will seriously affect equity markets.

-- Billiver (billiver@aol.com), October 22, 2000.

I would say this is particularly true of the euro, more than Asian currencies. But, if the whole basket drops too much, the boat will be severely rocked.

-- Chance (fruitloops@hotmail.com), October 22, 2000.

The yen, however, is the key, as I see it. And, so far, it has held up better than expected.

-- Wayward (wayward@webtv.net), October 22, 2000.