Print

Mail

wiki links

Won gains as S Korean stocks rally; baht falls

South Korea’s won gained this week, completing its best week since April 2006 as overseas investors increased purchases of local stocks. The Thai baht had its biggest weekly loss in seven months.

The won advanced for a second week after a government report on Tuesday showed export growth unexpectedly accelerated last month, improving the outlook for Asia’s fourth-biggest economy. Overseas shipments are likely to rise more than 10 percent this month, the South Korean Finance Ministry said in a monthly report released on Thursday.

“South Korea is probably the most sensitive to credit-market concerns, and when those ease, the won benefits the most among Asia’s emerging currencies,” said Tetsuo Yoshikoshi, an analyst at Sumitomo Mitsui Banking Corp in Singapore. “The stronger export number definitely supported the won.”

The won climbed 1.9 percent in the week to 973.80 per US dollar, Seoul Money Brokerage Services Ltd said.

The currency may advance to around 960 next week, Yoshikoshi said.

The baht had its worst week since August as oil importers took advantage of the currency’s rally last month to buy the US dollar and pay for shipments, Pongpen Ruengvirayudh, a senior director at the Bank of Thailand, said on Thursday.

The baht fell 0.8 percent to 31.69 per dollar in the week, data compiled by Bloomberg show. That was the biggest decline since the five days ended Aug. 17.

Malaysia’s ringgit fell on Friday, losing 0.2 percent to 3.1935 per dollar on concern a slowing US economy will damp demand for the nation’s exports. It still gained 0.1 percent in the week.

The US is Malaysia’s biggest export market. The ringgit also declined as Malysian Prime Minister Abdullah Ahmad Badawi fended off calls for his resignation after an electoral setback last month.

The Philippine peso fell after a government report showed inflation accelerated at the fastest pace in 20 months, damping demand for the nation’s stocks.

The currency declined for a second day after the statistics office on Friday said the inflation rate for last month rose to 6.4 percent, from 5.4 percent in February.

The peso declined 0.3 percent to 41.755 versus the dollar, the Bankers Association of the Philippines said. The peso still gained 0.1 percent this week.

Elsewhere, the Indonesian rupiah lost 0.2 percent to 9,200 per US dollar, Vietnam’s dong fell 0.1 percent to 16,110 and the Singapore dollar advanced 0.2 percent to S$1.3837.

Taiwan’s financial markets were shut for a holiday.
This story has been viewed 871 times.