Asian Currencies Slip From 30-Month High, Led by Won, on Intervention Risk - Asian currencies weakened for the first time in four days, led by South Korea’s won, on concern regional central banks will seek to counter appreciation that may hurt exports.
The Bloomberg-JPMorgan Asia Dollar Index retreated from its highest close since February 2008 as a technical indicator signaled the U.S. currency was likely to rebound. The dollar last week sank to its lowest level in at least 13 years against the Singapore dollar, Thai baht and Malaysia’s ringgit, depreciating amid concern the Federal Reserve will print more money to support the U.S. economy.
“The dollar has already priced in another round of U.S. quantitative easing and so some investors are buying it back,” said Yuji Kameoka, a senior economist at the Daiwa Institute of Research Ltd. in Tokyo. “With sharp appreciation in regional currencies, some local authorities may want to curb gains in the short term as Asian economies largely depend on exports.”
The won slumped 0.5 percent to 1,116.83 per dollar as of 1:53 p.m. in Seoul, according to data compiled by Bloomberg. The Singapore dollar slid 0.7 percent to S$1.3050, the baht fell 0.3 percent to 29.92 and the ringgit dropped 0.3 percent to 3.0950.
The Asia Dollar Index, which tracks the region’s 10-most used currencies excluding the yen, slid 0.4 percent. The gauge’s 14-day relative strength index, which traders use to predict price reversals, was 74 at the end of last week. A reading of more than 70 indicates the dollar is likely to rebound.
Countering Appreciation
Equity funds investing in Asia excluding Japan took in more than $1 billion in all but one of the four weeks through Oct. 13, according to data from EPFR Global. Asia’s developing economies will expand 9.4 percent in 2010, compared with growth of 2.7 percent in advanced countries, the International Monetary Fund forecast on Oct. 6.
The won fell for a second day, retreating from a five-month high. The Bank of Korea on Oct. 14 held off from raising interest rates for a third month, citing concern about a strengthening currency. Finance Minister Yoon Jeung Hyun said a day later that exchange-rate uncertainty must be monitored.
“We suspect there could be some intervention as the won has strengthened a lot in the past few weeks,” said Ko Yun Jin, a currency trader at Kookmin Bank in Seoul. “Since the won has a bit of difficulty going past 1,110, traders are starting to buy back the dollar.”
Thailand’s baht fell for the first time in a week as economists forecast the central bank will keep interest rates on hold at a review on Oct. 20 and government data due the same day will show exports grew at the slowest pace in 11 months.
Keeping Rates
A report today may show Singapore’s non-oil domestic exports rose 19.7 percent in September from a year earlier, slowing from a gain of 31.2 percent the previous month, according to a separate Bloomberg poll.
In Taiwan, the local dollar was little changed at NT$30.798, from NT$30.793 on Oct. 15, before data due on Oct. 20 that will show export orders increased 13.5 percent in September from the a year earlier, compared with a 23.3 percent gain in August, according to a Bloomberg survey. That would be the smallest gain since October 2009.
China’s yuan slid 0.1 percent to 6.6461. Gross domestic product increased 9.5 percent from a year earlier in the third quarter, a report on Oct. 21 may show, according to a Bloomberg survey.
Elsewhere, the Philippine peso fell 0.1 percent to 43.243 and the Indonesian rupiah weakened 0.2 percent to 8,933.
To contact the reporters on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
The Bloomberg-JPMorgan Asia Dollar Index retreated from its highest close since February 2008 as a technical indicator signaled the U.S. currency was likely to rebound. The dollar last week sank to its lowest level in at least 13 years against the Singapore dollar, Thai baht and Malaysia’s ringgit, depreciating amid concern the Federal Reserve will print more money to support the U.S. economy.
“The dollar has already priced in another round of U.S. quantitative easing and so some investors are buying it back,” said Yuji Kameoka, a senior economist at the Daiwa Institute of Research Ltd. in Tokyo. “With sharp appreciation in regional currencies, some local authorities may want to curb gains in the short term as Asian economies largely depend on exports.”
The won slumped 0.5 percent to 1,116.83 per dollar as of 1:53 p.m. in Seoul, according to data compiled by Bloomberg. The Singapore dollar slid 0.7 percent to S$1.3050, the baht fell 0.3 percent to 29.92 and the ringgit dropped 0.3 percent to 3.0950.
The Asia Dollar Index, which tracks the region’s 10-most used currencies excluding the yen, slid 0.4 percent. The gauge’s 14-day relative strength index, which traders use to predict price reversals, was 74 at the end of last week. A reading of more than 70 indicates the dollar is likely to rebound.
Countering Appreciation
Equity funds investing in Asia excluding Japan took in more than $1 billion in all but one of the four weeks through Oct. 13, according to data from EPFR Global. Asia’s developing economies will expand 9.4 percent in 2010, compared with growth of 2.7 percent in advanced countries, the International Monetary Fund forecast on Oct. 6.
The won fell for a second day, retreating from a five-month high. The Bank of Korea on Oct. 14 held off from raising interest rates for a third month, citing concern about a strengthening currency. Finance Minister Yoon Jeung Hyun said a day later that exchange-rate uncertainty must be monitored.
“We suspect there could be some intervention as the won has strengthened a lot in the past few weeks,” said Ko Yun Jin, a currency trader at Kookmin Bank in Seoul. “Since the won has a bit of difficulty going past 1,110, traders are starting to buy back the dollar.”
Thailand’s baht fell for the first time in a week as economists forecast the central bank will keep interest rates on hold at a review on Oct. 20 and government data due the same day will show exports grew at the slowest pace in 11 months.
Keeping Rates
A report today may show Singapore’s non-oil domestic exports rose 19.7 percent in September from a year earlier, slowing from a gain of 31.2 percent the previous month, according to a separate Bloomberg poll.
In Taiwan, the local dollar was little changed at NT$30.798, from NT$30.793 on Oct. 15, before data due on Oct. 20 that will show export orders increased 13.5 percent in September from the a year earlier, compared with a 23.3 percent gain in August, according to a Bloomberg survey. That would be the smallest gain since October 2009.
China’s yuan slid 0.1 percent to 6.6461. Gross domestic product increased 9.5 percent from a year earlier in the third quarter, a report on Oct. 21 may show, according to a Bloomberg survey.
Elsewhere, the Philippine peso fell 0.1 percent to 43.243 and the Indonesian rupiah weakened 0.2 percent to 8,933.
To contact the reporters on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
1 komentar:
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