South East Asian Currencies Plunge Against US Dollar
October 27 2009 - 1:59AM
RTTF2
During Tuesday's Asian trading, Southeast Asian currencies
plunged against the U.S. dollar as a slump in Asian stocks
decreased demand for emerging market assets. The currencies of
South Korea, Hong Kong, Thailand, Taiwan, Malaysia and Singapore
dipped to new multi-day lows against the greenback.
The Indian rupee, Philippine peso and Chinese Yuan also traded
lower against the US dollar. On the other hand, the Pakistan Rupee
showed strength against the buck.
Asian markets are trading weak on Tuesday with investors
indulging in some heavy selling following a negative close on Wall
Street overnight. Markets in Australia, Japan, and South Korea are
trading lower. Other markets across the Asia-Pacific region
Shanghai, Hong Kong, New Zealand and Indonesia are trading notably
lower with their benchmark indices losing between 1%- 1.75%.
Singapore and Taiwan are also trading weak, but with less
pronounced losses. Most of the markets in the region had ended
higher on Monday.
On Wall Street, stocks gave up early gains and declined sharply
on Monday amid a considerable pullback in the financial and
commodity sectors. The Dow closed with a loss of 104.2, or 1.1%, at
9,868, the Nasdaq declined 12.6 points, or 0.6%, to 2,142, and the
S&P 500 ended down 12.7 points, or 1.2%, at 1,067.
On the equity front, from U.S., the S&P/Case-Shiller home
price index, is scheduled to be released at 9 am ET. Economists
expect an 11.90% year-over-year decline in the 20-city composite
house price index for August.
At 10:00 am ET, the Conference Board is scheduled to release its
consumer confidence report for October. The report is expected to
show that the consumer confidence index rose to 53.5 in
October.
During early Asian deals on Tuesday, the South Korean won
slipped to a 4-day low of 1190.05 against the US dollar. This may
be compared to Monday's closing value of 1180.50. On the downside,
1193.4 is seen as the next target level for the Korean
currency.
In early Asian deals on Tuesday, the Singapore dollar showed
weakness against its US counterpart. The Singapore dollar touched a
15-day low of 1.4011 against the dollar, with 1.405 seen as the
next downside target level. At yesterday's close the pair was
quoted at 1.3980.
The Thai baht that closed yesterday's trading at 33.4250 against
the U.S. dollar weakened to 33.5150 during early Asian deals on
Tuesday. This set a 5-day low for the Thailand currency. The near
term support for the Thailand currency is seen around the 33.69
level.
The Hong Kong dollar edged down against the US dollar during
Tuesday's early Asian trading and hit a 5-day low of 7.7510. If the
Hong Kong currency moves further downwards, 7.751 is seen as the
next downside target level. At Monday's New York session close, the
pair was quoted at 7.7502.
The Taiwan dollar declined to a 12-day low of 32.5670 against
the U.S. currency in early Asian trading on Tuesday. The next
downside target level for the Taiwan dollar is seen at 33.262. The
pair closed yesterday's deals at 32.4020.
The Philippine peso weakened against the dollar after hitting a
12-day high of 46.2150 at 9:15 pm ET Monday. The peso thus dipped
to a 4-day low of 47.3950 per dollar within an hour. If the
Philippine currency drops further, it may target the 47.46 level.
At yesterday's close, the dollar-peso pair was quoted at 46.99.
The Malaysian ringgit that closed yesterday's trading at 3.3830
against the U.S. dollar fell to a 5-day low of 3.4085 during early
Asian deals on Tuesday. The next downside target level for the
Malaysian currency is seen at 3.411.
In early Asian deals on Tuesday, the Singapore dollar showed
weakness against its US counterpart. The Singapore dollar touched a
15-day low of 1.4011 against the dollar, with 1.405 seen as the
next downside target level. At yesterday's close the pair was
quoted at 1.3980.
The Indian rupee fell sharply against the US dollar during
Tuesday's early trading. The rupee that was worth 46.5750 against
the dollar at yesterday's New York session close, hit as low as
46.9650 by 11:30 pm ET. On the downside, 47.53 is seen as the next
downside target level.
In early deals on Tuesday, the Pakistan rupee climbed against
the US currency. The rupee reached 83.31 against the buck, compared
to yesterday's close of 83.36. If the rupee rises further, 82.91 is
seen as the next upside target level.
The Chinese yuan traded lower against its US counterpart during
Tuesday's early Asian trading. The yuan is now trading at 6.8325
versus the buck, and if it drops further 6.835 is seen as the next
target level. At Monday's New York session close, the pair was
quoted at 6.8288.
The People's Bank of China has set today's central parity rate
for the dollar-yuan pair at 6.8284. The pair is allowed to move 5%
above or below the target rate.
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