The South Korean won led falls in most of its Asian peers on Monday as interbank speculators and some real money funds reduced exposure in emerging Asian currencies on worries that a US default would cause a risk-off trade environment. Early Monday, the trend was checked by some central banks again with Monetary Authority of Singapore and Bank of Thailand spotted buying dollars to slow down strength in their currencies, dealers said.
The won slid as investors covered dollar-short positions amid caution over intervention and on dollar demand linked to a corporate take-over announced in May. Still, the South Korean currency found relief from exporters' end-month demand for settlements, especially around mid-1,050 levels per dollar, dealers said. The baht edged down as local interbank speculators covered dollar short positions on the central bank's intervention.
The dollar/baht 14-day RSI stayed around 20, suggesting the pair is seen as oversold. The Philippine peso dipped as investors covered dollar short-positions with the US debt-ceiling deadlock unresolved. The 14-day dollar/peso RSI rebounded, but it still stayed below the 30 threshold, indicating the pair remained in oversold territory.
Comments
Comments are closed.