SE Asian monies steady against U.S. dollar

SE Asian monies steady against U.S. dollar

SINGAPORE (Dow Jones): Southeast Asian currencies were mostly steady against the U.S. dollar in late Asian trading Monday, with the short-term outlook for the region's currencies varying between flat to slightly higher, market participants say.

With no major outcome from the Group of Seven (G-7) meeting of industrialized nations over the weekend and the focus turning to other emerging financial problems in places like Latin America, there won't be much selling interest in southeast Asian currencies for now, said market players.

All eyes are also focused on the annual meeting between the International Monetary Fund and the World Bank which kicks off late Monday in the U.S.

The baht led the gainers late Monday. The U.S. dollar is at 39.1750 baht in late offshore trading, down from 39.50 baht in early trading Monday and 39.52 baht late Friday.

The boost to the Thai baht Monday came as key cabinet ministers retained their portfolios, including the finance and commerce ministerial posts.

Thailand announced Monday a major cabinet reshuffle in which the government brought in the second largest opposition party in a move that will boost the ruling coalition.

The Singapore dollar and the Indonesian rupiah also gained ground against the U.S. dollar by late Monday compared with earlier levels.

The issue of a S$300 million bond by World Bank's International Finance Corp. Monday may have added to the positive tone on the Singapore dollar, said market players. In addition, the S$1.68 level to the U.S. dollar is seen as a very strong psychological support in the short term, said market players.

"The fact that an internationally reputable body like the IFC can issue a bond in Singapore dollars here is a morale-booster to Singapore," said Lee at MCM Asia Pacific.

In late trading), the dollar is at S$1.6853, down from S$1.6885 late Friday.

Similarly, the rupiah gained ground against the U.S. dollar Monday on a newspaper report that the government is mulling a monitoring system on capital flows.

"It's just some sort of reporting and not the Malaysian type of capital control," a dealer at another U.S. bank said. "So it's viewed positively," he said.

At late Asian trading, the dollar is at 10,475 rupiah, down from 10,675 in late-Friday trading.

However, bucking the trend, the Philippine peso closed slightly lower against the dollar Monday. Banks dominated trading, with commercial demand for the U.S. currency remaining low, traders said.

At the close, the dollar averaged 43.906 peso on the Philippine Dealing System, up 3 centavos from Friday's average of 43.876 peso. The dollar was last traded at 43.855 peso.