Ringgit sinks as SEA currencies pressured
Ringgit sinks as SEA currencies pressured
SINGAPORE (AFP): Malaysia's embattled ringgit crashed yesterday to a new record low for the second day running amid concern that its economy was in trouble while other Southeast Asian currencies were also hit in frenetic trading.
The Indonesian rupiah, the Singapore dollar and the Philippine peso were under pressure while the Thai baht was closely watched as Thailand's parliament debated the nation's economic crisis, dealers said.
The ringgit slumped to 2.8810 against the greenback from Wednesday's close of 2.8300, a level not seen since Malaysia floated its currency in 1973.
"It looks like the market wants to take the ringgit to the 2.9000 and 3. 000 figure this week," Alison Seng, analyst with U.S. research house Standard and Poor's MMS, told AFP.
A dealer with an European investment house said there was panic buying of the U.S. dollar by Malaysian corporates to meet their greenback commitments as "everyone is afraid the ringgit is going to get weaker."
The panic stemmed from persistent speculations that Malaysia's economy was going to be hit by a worsening current account deficit as the ringgit had plunged more than 13 percent since July 2, when the effective devaluation of the Thai baht sparked off Southeast Asia's currency turmoil.
The Indonesian rupiah fell Thursday to 2,960/70 against the U.S. dollar from Wednesday's close of 2,875/90 amid increasing concern over the high interest rate environment in Indonesia.
Indonesia had jacked up interest rates to punitive levels in a bid to cushion a steep fall of the rupiah, which fell to record low of 3,010 against the greenback earlier this month.
The Singapore dollar fell to 1.5160 against the U.S. dollar from Wednesday's close of 1.5042 as it also came under pressure from the weakness in the currency of its immediate neighbor Malaysia.
The ailing Thai baht was down a shade to 33.95 against the greenback in offshore trading from 33.75 on Wednesday.
Amid speculation the government would call for snap polls, the Thai parliament debated Thursday the nation's economic turmoil which culminated in the float of the baht on July 2.
The Philippine peso traded at 30.165 to the greenback from 30.100 on Wednesday, a day after the Central Bank of the Philippines started selling dollars when the peso fell to a record low 30.45.
In Tokyo, the dollar was easier against the yen in lackluster trading here Thursday with the absence of fresh incentives keeping activity subdued ahead of a long weekend in the United States, dealers said.
At 5:00 p.m. (0800 GMT), the dollar was quoted at 118.40-45 yen, down from 118.62 yen mid-morning and 118.90 yen in New York late Wednesday.
In London, by mid-morning in London, the dollar was trading at 1.8187 marks (from 1. 8099 late on Wednesday), 118.65 yen (118.85), 1.5017 Swiss francs (1.4970), and 6.1207 French francs (6.0964).
The mark was changing hands for 3.3667 French francs (3.3699), 977 lira (unchanged), 84.51 pesetas (84.63), 0.8260 Swiss francs (0.8268), and 65.27 yen (65.68).
Sterling was going for 1.6101 dollars (1.6096), 2.9278 marks (2.9133), 191. 05 yen (191.30), 2.4174 Swiss francs (2.4096), and 9.8495 French francs (9. 8128).