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Won, ringgit, rupiah fall on concern over US slowdown

Asian currencies dropped this week, with South Korea's won having its worst five-day decline in two months, as overseas investors sold the region's shares.

The won and the KOSPI index of stocks touched the lowest point since August on concern that a US economic slowdown will dampen demand for Asian assets. South Korea's central bank Governor Lee Seong-tae said the nation's economy faced intensifying risks from the possibility of a US recession and soaring fuel costs.

"The won is vulnerable to declines in global equities," said Yuji Kameoka, a senior economist and currency analyst at the Daiwa Institute of Research in Tokyo. "Concerns cooling US growth will drag global stock markets and the global economy lower encourages investors to sell emerging-market assets."

The won fell 0.6 percent this week to close at 942.80 against the US dollar on Friday in Seoul, Seoul Money Brokerage Services Ltd said.

It may trade between 945 and 960 in a month, Kameoka said.

The won was the third-worst performer out of the 10 most active Asian currencies outside of Japan this week. Thailand's baht was the worst, losing 3.4 percent offshore.

Malaysia's ringgit fell for the week, snapping a three-week gain, as stocks dropped the most since August. US reports this week showed slowing manufacturing and housing, and Merrill Lynch & Co announced larger-than-expected losses. The US is the biggest market for Malaysian exports.

The ringgit fell to 3.2680 per US dollar in Kuala Lumpur, from 3.2590 at the end of last week, data compiled by Bloomberg showed.

The New Taiwan dollar bucked the trend, advancing 0.5 percent to NT$32.315 against the US currency, its best week since September.

Indonesia's rupiah declined to the lowest in five months on Friday and the Jakarta Composite Index of shares fell as much as 4 percent. The rupiah traded at 9,440 per US dollar in Jakarta, compared with 9,436 a week ago, Bloomberg data showed. It fell to 9,495, the lowest since Aug. 17.

The MSCI Asia Pacific index of regional equities declined 3.22 percent this week, a third week of losses.

Elsewhere, the Philippine peso dropped 0.7 percent this week to 40.885, the Vietnamese dong was little changed at 15,983 and the Singapore dollar lost 0.3 percent to S$1.4350.
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