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Asian currencies tumble
Asian currencies headed for a weekly loss, led by Indonesia's rupiah and South Korea's won, as investors flee emerging markets to avoid risk from a deepening global economic slump.
- Bloomberg
- Published: 10:21 November 21, 2008
Singapore: Asian currencies headed for a weekly loss, led by Indonesia's rupiah and South Korea's won, as investors flee emerging markets to avoid risk from a deepening global economic slump.
Nine of the 10 most-active currencies in Asia dropped this week as the MSCI Asia Pacific Index slumped 8.5 per cent, the worst since the five-day period ended October 10.
The won slumped to the lowest level in a decade on Friday after UBS AG, the second- largest currency trader, said South Korea's economy will shrink 3 per cent in 2009.
Indonesia's rupiah plunged 10.3 per cent to 12,900 per dollar in Jakarta.
"Sentiment is likely to remain negative on Asian currencies and equity markets, given concerns over the duration and depth of a global recession," said Jimmy Koh, head of treasury research at United Overseas Bank Ltd. in Singapore.
The Philippine peso slid, weakening past 50 a dollar for the first time in two years, after a report on Thursday that showed US jobless claims at the highest since 1982 raised concern remittances from Filipinos will decrease.
Elsewhere, India's rupee slumped 2.3 per cent this week to 50.12 a dollar. Taiwan's dollar dropped 1.1 per cent for the week to NT$33.453 and Singapore dollar weakened 1 percent to S$1.5323.
Thailand's baht fell 0.5 per cent to 35.22 and Vietnam's dong was little changed at 16,972.
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