Southeast Asian currencies tumble again<\/p>\n
SINGAPORE (AFP): Southeast Asian currencies tumbled again
\nyesterday with the Malaysian ringgit slumping to a new record low
\nagainst the U.S. dollar on a downward revision of Kuala Lumpur's
\nlong-term credit outlook.<\/p>\n
Fears of an escalating banking crisis and more corporate
\ntroubles in the region due to ceaseless currency turmoil also
\ndampened sentiment for the Southeast Asian currencies, dealers
\nsaid.<\/p>\n
The already-bruised ringgit slumped to an all-time low of
\n3.1450 to the dollar before ending Asian trading at 3.1250 after
\nU.S.- based Standard and Poor's revised Malaysia's long-term
\nforeign currency rating outlook from "stable" to "negative."
\nThe ringgit had ended at 3.0475 against the greenback on
\nWednesday.<\/p>\n
Malaysia has come under market pressure to put its economy in
\norder after the ringgit eroded more than 20 percent against the
\nU.S. dollar since July 2, when regional currency turmoil erupted
\nwith Thailand's effective devaluation of its baht.<\/p>\n
Jacqueline Ong, regional economist with London-based financial
\nhouse I.D.E. A., said she expected "wild gyrations" over the near
\nterm for the regional currencies.<\/p>\n
Ong said reports of banks facing liquidity problems in
\nIndonesia and listed companies unable to service their loans in
\nthe Philippines haunted the regional currency markets which had
\nbeen generally calm over the last two days.<\/p>\n
Southeast Asia's foreign exchange turmoil was sparked off by
\nThailand's effective devaluation of its currency on July 2.<\/p>\n
Spot rupiah dropped to 3,033 in an early trade but recovered
\nat 3,018\/20 against the dollar at midday before closing at
\n3,027\/32.<\/p>\n
The Philippine peso ended weaker at 33.43 to the U.S. dollar
\nfrom Wednesday's close of 33.38 as the Manila stock market dived
\namid fresh rumors that certain large firms might default on their
\nbank loans.<\/p>\n
The Central Bank of the Philippines has said it is considering
\nrequiring banks to increase their loan loss provisions to deal
\nwith any defaults.<\/p>\n
Dealers in Singapore said the market expected more Philippine
\nlisted firms to report difficulties in meeting their loan
\nobligations.<\/p>\n
The Singapore dollar dropped to 1.5190 against the U.S. dollar
\nfrom 1.5120 a day earlier while the Thai baht was slightly higher
\nat 34.95 against the greenback from 35.10 on Wednesday amid
\nstrong hopes Thailand's political crisis could be resolved
\nwithout impacting the economy.<\/p>\n
Analysts also feel a new Thai constitution will be approved as
\nplanned on Saturday.<\/p>\n
"While the ringgit's fall, provided some form of spillover
\nbuying of the US dollar against the other regionals, domestic
\nfactors were at play for the baht," said Allison Seng, analyst
\nwith MMS in Singapore.<\/p>\n
Dealers also said the Monetary Authority of Singapore (MAS),
\nthe de facto central bank of the city state, was rumored to be
\nwanting to suppress the Singapore unit's strength for competitive
\nreasons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/southeast-asian-currencies-tumble-again-1447893297",
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