Southeast Asian currencies end mostly flat against U.S. dollar

Southeast Asian currencies end mostly flat against U.S. dollar

SINGAPORE (Dow Jones): Southeast Asian currencies ended a mixed trading session on Friday mostly flat to a fraction lower against the U.S. dollar.

While the Singapore dollar, the baht and the Philippine peso all eased a touch from levels seen toward the close of Asian trading hours Thursday, the rupiah finished marginally stronger.

In North Asia, although the won ended down as market participants bought U.S. dollars to service foreign-currency debt, the New Taiwan dollar rallied strongly, to end the day at a three-month high.

Late on Friday, the U.S. dollar was quoted at 39.5150 baht, up from 39.4250 baht late on Thursday, but still below the psychologically important 40 baht barrier.

Many market players agree that the baht has probably over- extended its rally.

"Certainly the baht has strengthened too much against the dollar. To maintain competitiveness it should move to the downside," said the treasurer of a European bank in Singapore.

Some market participants, however, remain bullish on the Thai currency, with a baht-trader at one U.S. bank in Singapore predicting that the U.S. dollar could fall all the way to 37.20 baht before encountering significant support.

Among other regional currencies, the Singapore dollar slipped back on Friday, despite being bolstered by more selling of U.S. dollars by hedge funds. At the end of Asian trading hours, the U.S. currency was quoted at S$1.6885, up a little from S$1.6872 late Thursday.

The Philippine peso also ended down. At the end of trading on the Philippine Dealing System, the U.S. dollar was changing hands at 43.99 peso, up from 43.95 peso at the previous close.

The rupiah inched a little higher, with the U.S. currency easing to 10,675 late in Asian trading, down from 10,775 the day before.

In North Asia, the won closed fractionally down, as domestic banks chased U.S. dollars to service interest payments due next week on foreign-currency-denominated debt.

At the close of trading in Seoul, the U.S. dollar ended at 1,389.00 won, up from 1,388.60 won the previous day.

The New Taiwan dollar, however, rose strongly, on heavy U.S. dollar sales by local exporters, to finish at its highest level since late June, as the U.S. currency dropped below the psychologically important NT$34.00 level.

At the close, the U.S. dollar was quoted at NT$33.998, compared with NT$34.293 at the end of Thursday's session.