Most emerging Asian currencies eased on Monday as China's interest rate cut underscored expectations that regional peers may join easing to cope with a global economic slowdown. Regional currencies came under further pressure as the US dollar broadly extended gains with the euro's weakness ahead of key talks between Greece and euro-zone finance ministers on the country's debt issues.
The Indian rupee bucked the regional trend on strong local shares. Thailand's baht slid to as low as 33.58 per dollar, its weakest since October 2009 after foreign investors were net sellers in the local stock market in the last two weeks, dumping a combined net 9.6 billion baht ($286 million) in shares. The Singapore dollar slid as macro funds and interbank speculators sold the city-state's unit. Offshore funds unloaded South Korea's won.
Malaysia's ringgit edged down, even though stronger-than-expected March industrial output helped the currency briefly turn firmer. The People's Bank of China on Sunday cut interest rates for the third time in six months to support the world's second-largest economy. "I don't see this necessarily as positive for Asian currencies. The market will see the China rate cut as continuing the policy easing in the region," said Khoon Goh, senior FX strategist for ANZ in Singapore.
Emerging Asian currencies did not react much to April US jobs data as non-farm payrolls increased 223,000, roughly in line with forecasts. The March figure was significantly downward revised and wage growth was also softer than expected. The Singapore dollar weakened past a chart support at 1.3343 per US dollar, the 76.4 percent Fibonacci retracement of its appreciation last week. The city-state's unit may soften to 1.3381, its May 5 low, if the retracement is cleared, analysts said. The next level would be 1.3400-1.3410, they added.
The won slid as offshore funds sold the South Korean currency on regional weakness. The unit pared some of its losses on demand from exporters for settlements as it has a chart support at 1,093.3, the 38.2 percent retracement of its appreciation from March to April. The won on Friday briefly weakened past the retracement but ended the session firmer than the level. The ringgit fell as leveraged funds and interbank speculators sold the currency. The Malaysian currency briefly turned firmer after data showing industrial production in March rose 6.9 percent from a year earlier, better than market expectations.