Most Asian currencies dow peso finishes at 15-month

Singapore (Dow Jones): Most Asian currencies retreated Thursday as the U.S. dollar extended its overnight gains against the yen, with the Philippine peso closing at a 15-month trough, weighed down by the government's fiscal woes.

The dollar ended at 53.370 pesos on the Philippine Dealing System - its highest close since Aug. 3, 2001 - and up from 53.220 pesos Wednesday after trading between 53.260 pesos and 53.430 pesos.

Traders noted market positioning by some banks ahead of the government's 10-month budget deficit data next week. Generally, across the region's currency markets, market players covered short dollar positions after the U.S. unit firmed further as worries about an impending war in Iraq subsided.

But trading ranges remained tight as the early spate of dollar buying wasn't sustained into the afternoon, traders said.

Market players are now waiting for several important economic data due out of the U.S. later Thursday and Friday for clues about the health the economy.

Wall Street's reaction to those data will also be closely watched as the U.S. equities market is likely be a key factor that will determine the direction of regional currencies, analysts say.

The New Taiwan dollar also tracked the yen lower, with offshore players actively buying the U.S. currency.

The dollar ended at NT$34.736, up from Wednesday's NT$34.619. Intraday, it moved between NT$34.674 and NT$34.745.

All eyes are now on the island's third-quarter gross domestic product data, scheduled to be released after the market's close Friday.

The Singapore dollar weakened in tandem with the yen but recovered some lost ground late in the day.

At 10:39 GMT (6:39 pm Jakarta time), the U.S. dollar was quoted around S$l.7635 compared with S$1.7637 late Wednesday. During the Asian session, it traded between S$1.7655 and S$l.7680.

The outlook for the local dollar remains weak and speculation was still rife that the Monetary Authority of Singapore may loosen its currently neutral monetary policy bias, dealers said.