SE Asian currencies lower in late trading

SE Asian currencies lower in late trading

SINGAPORE (Dow Jones): Southeast Asian currencies are lower in
late trading yesterday, although the U.S. dollar has steadily
come off highs seen in early morning trading.

The Indonesian rupiah bucked the trend, holding steady in thin
trade on anticipation of good news later Thursday from a meeting
of international lenders in Paris.

Other regional currencies have retreated from levels seen late
Wednesday in Asia, in line with losses overnight by the Japanese
yen.

The yen fell before Asian trading opened Thursday on reports
suggesting that former Prime Minister Kiichi Miyazawa, who
officially became Japan's finance minister late Thursday, may
endorse a reflationary policy and abandon the effort to support
the yen.

In a late trading, the dollar was quoted at 142.29-32 yen
against 142.28 in early trading here and 142.38 yen in New York
Wednesday afternoon.

Chua Soon Hock, chief strategist for Sanwa Bank in Singapore,
said however that Japan's economic policies will be good for the
Japanese economy and, ultimately, good for the yen and other
Asian currencies.

Japan is looking at an expansionary fiscal policy, tax cuts
and fiscal stimulus coupled with a very loose monetary policy,"
Chua said. "You can't ask for a better policy mix to jump-start
an economy."

In this environment, Chua said, regional currencies have
stabilized and even strengthened.

The Singapore dollar fell Thursday morning, but regained
ground steadily against the U.S. dollar throughout the day.
Position-squaring by commercial entities was the main influence
on the market, traders said.

Singapore dollar

The trader said that, technically, U.S. dollar would gain on
the Singapore dollar eventually, but added that it may take
awhile.

"For the upward trend to change, the U.S. dollar has to go
below S$1.6950. I don't think that is likely to happen," he said.

In a late trading, the U.S. dollar was quoted at S$1.7119, up
from S$1.7085 late Wednesday in Asia, but down from intraday
highs of S$1.7230.

Dealers in Singapore said trading in the ringgit was thin,
despite speculation in Malaysia that the ruling party, the United
Malays National Organization, may call elections before the year
is out to hold the polls before the economy worsens.

In a late trading, the U.S. dollar is quoted at 4.1260
ringgit, up from 4.1115 ringgit late Wednesday.

Trading was also sluggish in the Thai baht.

"The government postponed its big data release scheduled for
today until tomorrow, but the market didn't make much of that,"
said a trader with a U.S. bank in Singapore. "Everyone knows the
economy is bad up there, and people don't really expect any
surprises."

Against the baht, the U.S. dollar is quoted at 40.7050 baht,
up from 40.6550 baht Wednesday.

On the Philippine Dealing System, the U.S. dollar ended at
41.995 pesos, up from 41.900 baht on Wednesday.

Meanwhile, in Northeast Asia, the South Korean won closed
higher again as it remained supported by ample dollars from local
exporters, traders said in Seoul.

The dollar closed at 1,234 won, down from 1,244 won Wednesday.

The New Taiwan dollar ended slightly higher against the U.S.
currency on month-end corporate demand for the local currency,
according to foreign exchange traders in Taipei.

The U.S. dollar ended at NT$34.330, down from NT$34.332 on
Wednesday.

Taipei traders said corporations normally buy NT dollars late
in the month to pay salaries and suppliers.