Southeast Asian currencies drift as yen steadies

Southeast Asian currencies drift as yen steadies

SINGAPORE (Dow Jones): Southeast Asian currencies drifted in
relatively tight trading ranges yesterday, following the Japanese
yen even as it led nowhere.

The Japanese currency's movement was kept in check by fears of
renewed Bank of Japan intervention and cautious trading as U.S.
President Bill Clinton embarked on a high-profile, nine-day trip
to China.

"Overall, it's pretty quiet trading because they (the regional
currencies) are all following the dollar-yen," a trader in
Singapore said. "They are all looking at what's going to come out
of China."

After testing a high of 141.65 yen early in the Asian day, the
U.S. currency lost steam and profit-taking set in, traders said.

About 0810 GMT (4:10 a.m. EDT), the U.S. dollar was trading at
140.81 yen, down from 141.23 yen late Wednesday in New York.

In Malaysia, Prime Minister Mahathir Mohamad named a close
ally and former finance minister, Daim Zainuddin, as a special
economics minister, and the announcement helped nudge the ringgit
(MYR) lower against the U.S. dollar.

"You had a little bit of selling on the ringgit this morning,"
a third trader in Singapore said. "The market is interpreting it
as a move to consolidate his (Mahathir's) power and to push
(Finance Minister) Anwar (Ibrahim) aside."

Late in Asian trading, the dollar was quoted around 3.9700
Malaysian ringgit, up from 3.9525 ringgit in Asia late Wednesday,
but off an intraday low of 3.9800 ringgit.

In Thailand, the baht (THB) gained some ground against the
U.S. dollar early in the Asian day, but retreated again in a
thin, nervous market, traders said.

Like its regional siblings, the baht was held in a tight range
during the session, with the U.S. dollar quoted at 41.2100 Thai
baht late in the day, up from an earlier low of 40.9900 baht and
from 41.0350 baht late Wednesday in Asia.

A new agreement between the International Monetary Fund and
the Indonesian government left the rupiah unmoved during
Thursday's Asian trading.

"The problem in Indonesia is more than just money; it's
social, political and all these other things," the first trader
said, explaining why the agreement had scant impact.

Another added, "In order for a currency to move, there must be
some interest, people have to be taking positions on the
currency."

Except for a few necessary commercial transactions in the
rupiah, the market has all but dried up, he said.

The U.S. dollar was at 14,7500 rupiah late in the Asian day,
down slightly from 14,7750 rupiah late Wednesday.

The Singapore dollar remains a magnet for Southeast Asia
foreign exchange dealings because of it relatively high
liquidity, but traders said the Singapore currency is also
trapped by the yen's movements.

"In the near future, I don't think you'll see them get away
from the yen," one said.

Off-budget measures expected to be announced Monday in
Singapore have failed to spark excitement in the market and
aren't expected to have a significant impact.

The U.S. dollar was trading at S$1.6570 late Thursday, up
slightly from S$1.6500 a day earlier.