Hong Kong: Asian currencies fell this week, led by South Korea's won and the Indonesian rupiah, on speculation China will take more steps to curb inflation after economic growth accelerated to a three-year high.
The Bloomberg-JPMorgan Asia Dollar Index declined 0.7 per cent this week, the biggest drop in eight months, on concern monetary tightening in China will damp a recovery in global trade.
A proposal by President Barack Obama to reduce risk-taking by US financial institutions cooled demand for emerging-market assets, dragging regional stocks lower.
"The China bubble risk is a big source of fear for financial markets, particularly investors in risky assets around the world," said Tim Condon, head of Asia research at ING Groep NV in Singapore.
