Asian monies fall on bourse sell-off
Asian monies fall on bourse sell-off
SINGAPORE (Dow Jones): Plunging stock prices pushed most Asian currencies lower Monday with only the Singapore dollar and the Thai baht escaping the market's wrath.
The rout in Asian equities was triggered by last week's spectacular implosion on Wall Street that was capped Friday by record point drops in the Dow Jones Industrial Average and Nasdaq composite index.
The Indonesian rupiah had only a mild setback, despite a nearly 5 percent decline in the local stock market.
The dollar was bid up to nearly Rp 7,700 in intraday trading as offshore players who had shorted the U.S. currency had to buy dollars to cover their positions.
Other participants, however, were quick to take profit on the dollar's rise on the view that the dollar was overshooting.
At the close the U.S. dollar was quoted at Rp 7,670, up from Rp 7,623 late Friday.
In South Korea, where both the Composite Stock Price Index and the technology-heavy Kosdaq suffered record losses, the won hit an intraday low of 1,115.30 to the dollar before regaining its composure. At the close the dollar was quoted at 1,113.80 won, up from 1,111.0 won late Friday.
The New Taiwan dollar edged lower, but central bank selling of U.S. dollars helped limit losses in the local currency. Authorities reportedly sold the U.S. dollar around the NT$30.560 level.
At the close the U.S. dollar was quoted at NT$30.555, up from NT$30.461 Friday.
The Singapore dollar, shrugging off a massive sell-off in local stocks, rose to its highest level against the U.S. dollar in more than a month.
The U.S. dollar touched an intraday low of S$1.7042 late in the session, its weakest performance against the Singapore currency since March 13. The U.S. dollar recovered slightly and near the end of trading was quoted at S$1.7055, down from S$1.7115 late Friday.
The Philippine peso was pressured lower by both Wall Street's declines and the prospects of a higher-than-expected rise in U.S. interest rates next month.
The dollar shot up to 41.270 pesos in the opening hours of trading before the peso recovered. market if necessary.
The Thai baht weathered the stock market volatility with aplomb.
Late in Asia the dollar was quoted at 37.885 baht, down from 37.965 baht Friday.