A rebound in the dollar globally weighed down most Asian currencies on Monday, taking off some pressure on central banks in the region that have in recent weeks intervened to curb currency appreciation.
The euro backed off from a 14-month high against the dollar as investors trimmed long positions on caution about what euro zone finance ministers may say about its recent strength at a meeting later on Monday.
Investor sentiment was also overshadowed by weaker stocks after Bank of America posted a large quarterly loss and data offered fresh evidence that US consumption remained week.
PESO:
The peso lost 0.6 percent to 46.93/USD, a two-week low, as dollar firmed against major currencies after disappointing US corporate earnings weighed down stocks. "The US dollar has had a decent rebound since Friday night against majors. Some short covering in dollar/Asia is going on at the moment," said a Manila-based trader.
But traders believe the peso's medium-term fundamentals remain intact. Meanwhile, one-month offshore dollar/peso NDFs rose to 46.88, implying a 0.2 percent peso fall from the spot compared to 0.1 percent at Friday's close.
RINGGIT:
The ringgit lost 0.6 percent to 3.391 per dollar. It was little moved by comments from the central bank chief that the bank was not concerned by the daily fluctuations of the currency. "Ringgit is mostly tracking regionals and the only local Malaysian factor this week is the government budget speech on Friday in which the market is monitoring fiscal pump priming and deficit-cutting measures," a Kuala Lumpur-based trader said.
BAHT:
The baht eased 0.4 percent to 33.52 per dollar, tracking weaker euro, yen and other Asian currencies. "Dollar/baht rebounded - the same as other Asians, but the pair was capped at 33.50 and we see some demand below 33.44," said a trader in Bangkok.
The Bank of Thailand is expected to keep interest rates on hold on Wednesday for the fourth meeting. Investors remain on edge despite assurances from policymakers and the palace itself that the 81-year-old Thai king is on the mend after a bout of pneumonia.
SINGAPORE DOLLAR:
The Singapore dollar retreated as far as 1.3995 per US dollar, falling further from its highest level since August 2008 hit on Thursday.
"A lot of profit taking from those who went long on US dollars below 1.3930 last Friday. Many were selling at 1.3995-1.3970," said a Singapore-based trader.