Ringgit sinks as SEA currencies pressured<\/p>\n
SINGAPORE (AFP): Malaysia's embattled ringgit crashed
\nyesterday to a new record low for the second day running amid
\nconcern that its economy was in trouble while other Southeast
\nAsian currencies were also hit in frenetic trading.<\/p>\n
The Indonesian rupiah, the Singapore dollar and the Philippine
\npeso were under pressure while the Thai baht was closely watched
\nas Thailand's parliament debated the nation's economic crisis,
\ndealers said.<\/p>\n
The ringgit slumped to 2.8810 against the greenback from
\nWednesday's close of 2.8300, a level not seen since Malaysia
\nfloated its currency in 1973.<\/p>\n
\"It looks like the market wants to take the ringgit to the
\n2.9000 and 3. 000 figure this week,\" Alison Seng, analyst with
\nU.S. research house Standard and Poor's MMS, told AFP.<\/p>\n
A dealer with an European investment house said there was
\npanic buying of the U.S. dollar by Malaysian corporates to meet
\ntheir greenback commitments as \"everyone is afraid the ringgit is
\ngoing to get weaker.\"<\/p>\n
The panic stemmed from persistent speculations that Malaysia's
\neconomy was going to be hit by a worsening current account
\ndeficit as the ringgit had plunged more than 13 percent since
\nJuly 2, when the effective devaluation of the Thai baht sparked
\noff Southeast Asia's currency turmoil.<\/p>\n
The Indonesian rupiah fell Thursday to 2,960\/70 against the
\nU.S. dollar from Wednesday's close of 2,875\/90 amid increasing
\nconcern over the high interest rate environment in Indonesia.<\/p>\n
Indonesia had jacked up interest rates to punitive levels in a
\nbid to cushion a steep fall of the rupiah, which fell to record
\nlow of 3,010 against the greenback earlier this month.<\/p>\n
The Singapore dollar fell to 1.5160 against the U.S. dollar
\nfrom Wednesday's close of 1.5042 as it also came under pressure
\nfrom the weakness in the currency of its immediate neighbor
\nMalaysia.<\/p>\n
The ailing Thai baht was down a shade to 33.95 against the
\ngreenback in offshore trading from 33.75 on Wednesday.<\/p>\n
Amid speculation the government would call for snap polls, the
\nThai parliament debated Thursday the nation's economic turmoil
\nwhich culminated in the float of the baht on July 2.<\/p>\n
The Philippine peso traded at 30.165 to the greenback from
\n30.100 on Wednesday, a day after the Central Bank of the
\nPhilippines started selling dollars when the peso fell to a
\nrecord low 30.45.<\/p>\n
In Tokyo, the dollar was easier against the yen in lackluster
\ntrading here Thursday with the absence of fresh incentives
\nkeeping activity subdued ahead of a long weekend in the United
\nStates, dealers said.<\/p>\n
At 5:00 p.m. (0800 GMT), the dollar was quoted at 118.40-45
\nyen, down from 118.62 yen mid-morning and 118.90 yen in New York
\nlate Wednesday.<\/p>\n
In London, by mid-morning in London, the dollar was trading at
\n1.8187 marks (from 1. 8099 late on Wednesday), 118.65 yen
\n(118.85), 1.5017 Swiss francs (1.4970), and 6.1207 French francs
\n(6.0964).<\/p>\n
The mark was changing hands for 3.3667 French francs (3.3699),
\n977 lira (unchanged), 84.51 pesetas (84.63), 0.8260 Swiss francs
\n(0.8268), and 65.27 yen (65.68).<\/p>\n
Sterling was going for 1.6101 dollars (1.6096), 2.9278 marks
\n(2.9133), 191. 05 yen (191.30), 2.4174 Swiss francs (2.4096), and
\n9.8495 French francs (9. 8128).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ringgit-sinks-as-sea-currencies-pressured-1447893297",
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"sponsor": "Okusi Associates",
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