The Malaysian ringgit and Philippine peso hit multi-week lows on Monday as investors dumped Asian stocks after a further deterioration in US consumer confidence dented hopes of a quick global recovery. The Australian and New Zealand dollars lost ground as renewed risk aversion triggered profit-taking in commodity-linked currencies that had looked to benefit first from a recovery in major economies including the United States and China.
Indonesia's markets were closed for holiday.
RINGGIT The Malaysian ringgit loses 0.8 percent to 3.542 per dollar, a three-week low, as investors dumped riskier assets amid renewed concerns about the global economy. "Dollar/ringgit spiked higher at opening on back of a stronger dollar and weaker stock markets," said a trader in Kuala Lumpur.
The ringgit has lost almost 2.5 percent against the dollar so far this year, making it one of the worst performing currencies in Asia. Meanwhile, three-month dollar/ringgit non-deliverable forwards rose to 3.542, implying a 0.2 percent ringgit fall from the spot compared to 0.5 percent on Friday.
PESO The peso fell 0.6 percent to 48.325 per dollar, a one-month low, as investors dumped local stocks on global economic jitters. "Risk aversion and short covering on the offshore markets have forced dollar/peso higher today and met our objective at 48.30," said a Manila-based dealer, adding: "We are bound to see dollar/peso heading towards 48.70 and 49.10." Six-month dollar/peso NDFs rose to 48.97, implying a 1.4 percent peso fall from the spot compared to 1.6 percent on Friday.
WON The South Korean won lost 1.4 percent to hit its weakest close in a month against the dollar on Monday as falling global markets prompted traders to reduce bets on riskier assets. North Korea's announcement on the reopening of its border with the South helped boost expectations for easing tension on the peninsula but failed to offset concerns about unstable global stock markets.
The won last settled at 1,256.9 per dollar, dealers said, compared with Friday's domestic close of 1,239.2. It was the currency's weakest finish since 1,259.5 on July 17. "Fears that the global stock markets could face a steep correction phase prompted traders to rush to build up dollar positions (against the won)," said a foreign bank trader.
"The won's future depends almost wholly on the Chinese and other global stock markets for the time being," he added. Stock markets fell across the region, tracking Wall Street drops over the weekend after a deterioration in US consumer confidence cast doubts on the pace of global economic recovery. The main Seoul stock market's benchmark KOSPI also lost nearly 3 percent.
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