SE Asian currencies down as U.S. dollar surges against yen

SE Asian currencies down as U.S. dollar surges against yen

SINGAPORE (Dow Jones): Southeast Asian currencies -- with the exception of Indonesia's surprisingly strong rupiah -- were well down against the U.S. dollar in late trading on Tuesday, after failing to regain ground lost Monday night when the yen fell dramatically against the U.S. currency.

At late trading, the U.S. dollar was trading at 123.13 yen, well up from 119.27 yen late Monday. "From what we see, players are now looking for opportunities to buy on dips, so we don't expect a significant decline by the yen, which should keep the regional currencies under pressure this week," a dealer said.

He said big moves downward by the Singapore dollar, Thai baht and Philippine peso are most likely events welcomed by the relevant monetary authorities "that have been seen buying the U.S. dollar to slow the appreciation we've seen in regional currencies."

The Singapore dollar has fallen to S$1.66 from S$1.62 in a little more than two trading sessions," said a trader at a U.S. bank. "We can't confirm it, but the market believes the local banks have been asked by the MAS to come in at S$1.6630 to sell U.S. dollars."

At late Asian trading, the U.S. dollar is trading at S$1.6605, up from S$1.6475 late Monday and at 8,075 rupiah, well down from 8,500 rupiah in late trading Monday.

Traders said a wave of U.S.-dollar buying started in earnest last Friday.

The U.S. dollar is also trading at 41.00 pesos in late trading, again well up from 39.85 late Monday. The 2.9 percent decline in the currency's value shows how closely linked Southeast Asian currencies are to the trials and travails of the yen, traders and economists said.

In North Asia, the U.S. dollar is trading at 1,317 won, up from 1,314.7 won; and at NT$32.766, up from NT$32.647 late Monday.