Asian regional currencies fell on Thursday, weighed down by weak equity markets and heightened prospects of a rate rise in the United States.
The Singapore dollar struck a two-week low of 1.7150 to a US dollar in offshore deals overnight and the South Korean won shed more than half a percent from Wednesday's six-week peak to hit a five-session low of 1,163 per dollar.
The Taiwan dollar hit a three-day trough of 33.57 per dollar and the Thai baht saw its lowest point since Monday.
"Interest rate uncertainty has taken its toll on risk appetites," said Thio Chin Loo, currency strategist at BNP Paribas in Singapore.
"Further volatility is expected as data and Fed-speak will continue to shape expectations in the run up to the FOMC meeting," she said.
The US dollar touched a two-week high against the euro after Federal Reserve officials echoed comments by Fed Chairman Alan Greenspan on Tuesday, with one saying the central bank was determined to defend price stability and support an economic recovery.
The yen, however, managed to rebound after surprisingly strong machinery orders data reinforced a recent string of bullish numbers on the Japanese economy.
Cliff Tan, strategist at Citigroup in Singapore, said markets would lack direction until the Fed's rate-setting meeting on June 29-30. "We see very limited investor flows whether in equity or FX markets," Tan said.
In South Korea, foreign investors have turned net sellers of equities since Wednesday after buying in the previous two sessions. The benchmark stock index ended Thursday trade down 1.5 percent, while Taiwan's key TAIEX stocks index lost 1.65 percent.
The rupiah hit lows on the weaker side of 9,400 per dollar, down nearly two percent from the week's highs, despite recent central bank measures to shore up the currency.
The central bank raised reserve requirements for Indonesian banks from July and also announced limits on banks' open currency positions after the rupiah hit a two-year low around 9,570 a dollar last week, a drop of more than 10 percent in two months.
Michael Spencer, chief economist at Deutsche Bank in Hong Kong, said the moves by Bank Indonesia (BI) would eventually push interest rates higher.
Spencer said the measures might still not stop the rupiah from falling further but could slow the pace of its decline.
The peso weakened to lows seen last Friday, while markets awaited the results of an official count of the presidential elections.
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