Asian currencies dive as Moody's ravage Japan
Asian currencies dive as Moody's ravage Japan
SINGAPORE (Reuters): Asian currencies fell sharply yesterday as the yen was ravaged after U.S. ratings agency Moody's changed its outlook on Japan's sovereign debt.
Moody's Investors Services lowered the rating to negative from stable, a heavy blow to an already beleaguered yen, and sent a bearish ripple through other Asian currencies.
Analysts said the rating change reflected strong worries about Japan's financial system and the inability of its leaders to fix the country's economic problems.
The yen tumbled to a 6-1/2 year low of 135.20 yen in Asia before the rot was checked by apparent central bank intervention.
"The sentiment is weak on regionalls because the yen is the dominant factor here," a dealer with a U.S. brokerage said.
But most regional currencies managed to bounce off their lows after absorbing the impact of the yen's fall.
This was helped by profit taking in dollars ahead of the weekend and shortened trading in some Asian countries next week.
The Indonesian rupiah, in contrast, warded off blows from the yen, due to moderately thin interest in the currency.
Spot rupiah was quoted at 8,520/570 at 0820 GMT compared with 8,525/625 late on Thursday.
"The market is reluctant to buy or sell dollars aggressively until there are concrete details from the IMF (International Monetary Fund)," said Andy Tan, general manager of Standard & Poors/MMS in Singapore.
The Singapore dollar took its cue from the yen with little impact seen from news Singapore had raised the amount it was willing to pledge to guarantee Indonesian trade to US$3 billion from US$2 billion.
The Singapore dollar was quoted at 1.6262, up from 1.6340 and against late Thursday's 1.6280/90.
The Thai baht revived, recovering from intraday lows at 41.95 to stand at 41.000/200 per dollar in late trade against Thursday's 40.65/85.
Malaysia's ringgit was also dampened by the U.S. dollar's rise against the yen and fell to a low of 3.8000 per dollar.
It was quoted around 3.7650/750 in late trade.
The Philippine peso sagged further, falling to 39.99 per dollar, before finishing at 39.14.
North Asian currencies slumped on the yen's weakness with the Taiwan dollar closing lower at T$32.961, down from T$32.887.
The South Korean won continued to slide as well on dollar demand for interest payments on foreign debt due next week.
The won ended at 1,446 per dollar, firmer than the midday 1,463 close but down from Thursday's finish at 1,413.
The Hong Kong dollar recovered to HK$7.7480/90 on dollar profit taking after brushing lows at HK$7.75.