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.