Print

Mail

wiki links

Regional currencies drop on credit-market turmoil

Asian currencies recorded losses last month as appetite for emerging-market assets waned because of turmoil in global credit markets.

Investors reduced holdings in the region on concern defaults on mortgages to the riskiest buyers in the US will slow economic growth, damping demand for Asian exports from their main market. Indonesia's rupiah had a third month of losses, the worst run in almost two years.

Indonesia's currency fell 2 percent last month to 9,395 against the US dollar, according to data compiled by Bloomberg. It rose 0.3 percent yesterday as Asian currencies rebounded after regional stocks gained and as US President George W. Bush's plans to help mortgage borrowers revived confidence in riskier assets.

South Korea's won also had its biggest monthly loss in more than three years amid the US subprime mortgage losses.

The won fell 2.1 percent last month to 938.30 against the US dollar, the biggest decline since April 2004, according to Seoul Money Brokerage Services Ltd. The currency reached 952.30 on Aug. 17, the weakest since Oct. 26 last year.

The Vietnamese dong had the worst month in more than six years, as the government said it increased sales of the currency.

The finance ministry wants to devalue the dong 0.1 percent a year for Vietnam to have an export advantage versus its competitors.

The dong dropped 0.5 percent to 16,236 last month, the most since July 2001, according to prices from HSBC Holdings Plc.

Elsewhere in Asia last month, the Singapore dollar fell 0.7 percent to S$1.5225 and Thailand's baht dropped 1.6 percent to 34.31 in onshore trading.

The New Taiwan dollar weakened 0.6 percent to NT$32.996, Taipei Forex Inc said.

The Taiwanese currency gained NT$0.054 against the greenback compared with Thursday. A total of US$923 million changed hands during the day's trading.
This story has been viewed 1060 times.