The South Korean won and the Philippine peso led Asian currencies lower on Tuesday as anaemic US and euro zone data highlighted worries about the global outlook, hitting the stock and bond markets. Most Asian currencies lost grounds against the dollar, which gained nearly one third of a percent. Yen rose 0.2 percent against the dollar and hit a nine-year peak against the euro.
The MSCI index of Asia Pacific stocks outside Japan fell more than 0.8 percent, tracking a weak Wall Street. The South Korean won hit its lowest level in over a week against the dollar as investors covered dollar short positions amid concerns over the global recovery.
The won was quoted at 1,192.2 per dollar, lowest since August 16, against its previous close of 1,181.9. It had found some relief earlier as exporters lined up to buy it for end-month settlements at around 1,190. Foreign investors were net buyers of South Korean shares despite broader equity market weakness. The Philippine peso lost more than half a percent, also in reaction to a violent end of a bus hijack incident in Manila on Monday.
"The peso feels the weight of global risk aversion and the hostage- taking drama. The market also reacts to a dollar rebound while the peso is partly hurt by the bus hijack after tourists were killed during the fiasco," a Manila-based currency trader said.
The peso ranged 45.20-36 during morning trade and is expected to stay within 44.80-45.50 this week. Despite its losses this week, the peso has gained 2.4 percent in the past month. The Thai baht opened a shade stronger than late Monday but a broad dollar rally against Asian currencies and Bank of Thailand's intervention pushed it down to around 31.50-52 per dollar. A dealer said broad consolidation of Asian stocks this week reflected market caution amid uncertain US and euro zone economic pictures. The baht has appreciated 1.9 percent against the dollar in the past month and 5.8 percent this year, the third best Asian performer after the yen and ringgit.
Comments
Comments are closed.