Business Today

Archive for March, 2010

This week, the Asian currencies collapsed with the South Korean won and Philippine peso posted the biggest depreciation in one year is more affected by the debt crisis in Europe that encourages investors reluctant to hold risky assets.

The MSCI Asia-Pacific Index of regional shares for having the worst week since February 2009. Minister of Finance of Greece George Papaconstantinou acknowledged experiencing a lack of funds to pay maturing debts amounting to 8.5 billion euros (U.S. $ 10.8 billion) this month. Moody’s Investors Service said the fiscal crisis could threaten Europe Portugal, Spain, Italy, England and Ireland.

“Exchange and has a typical Asian currency risky assets, and now they face an aggressive selling actions. Asian currencies also had a harder blow than the emerging market for this region depends on external demand. That is, if there is a threat to global economy, investors will unleash the Asian currencies, “said minorities Uchida, a senior analyst with Bank of Tokyo-Mitsubishi UFJ Ltd., Tokyo.

The won weakened 4.1% to 1155.45 per U.S. dollar during the week and the peso 2.4% to 45.535 depressed. Malaysian Ringgit also declined 2.7%, biggest since the U.S. dollar-peg in 2005. Indonesian Rupiah weakened 0.1% to 9225 per dollar yesterday. Bank of Indonesia may have entered the market for intervention that has limited the decline in the week amounted to 2.4%.

The Deputy Governor of Bank of Indonesia ensures a stable of Indonesia Rupiah level and there are no plans to implement the system of capital controls.

Indian rupee also weakened yesterday and suspected central bank intervention after touching its lowest level in two months 45.725 per U.S. dollar. Throughout this week, the rupee weakened 2.5% to 45.4800.

In Taiwan, market participants said the central bank sells domestic currency at the last minute to push the depreciation of trading yesterday. Taiwan dollar weakened 1.4% this week to NT $ 31.85 per U.S. dollar.

While for the Singapore dollar, weakened 1.9% to S $ 1.3933 this week and the Thai baht remained unchanged at 32.35.

Increasingly powerful Asian currencies against the U.S. dollar, including the Philippine peso and Singapore dollar, print the best week in nearly four months, after a report showed economic growth in this area is accelerating.

Bloomberg-JPMorgan Asia Dollar Index reached the highest pitch in the 20 months after China’s economy to expand rapidly in the first quarter in the last three years. Singapore revalues its currency value after the economy experienced the fastest growth since the year 1975, adding to speculation that other central banks will be tightening policy to deal with inflation.

“Economic growth in Asia is undoubtedly stronger than in the middle west,” says Benjamin Pedley, Managing Director of LGT Investment Management Ltd. in Hong Kong in a broadcast on Bloomberg television

”I strongly believe that currencies like the Singapore dollar, Korean won, Malaysian ringgit and Indian rupee more or less will continue to rise until next year. “

Peso strengthened 1.3% this week to 44.40 per dollar. This is the highest increase since December 4, according to Tullett Prebon Plc data. Singapore dollar raised 1.3% to S $ 1.3726, the largest increase since October 9. Taiwan dollar appreciated by 0.7% to NT $ 31.39 and South Korea rose 0.7% to 1110.23 won.

Asia Dollar Index, dragging up 10 regional Asian currencies, except the yen, at 113.33 yesterday, the highest level since August 2008, after China reported its economy grew by 11.9% from last year. Singapore’s gross domestic product rose by 32.1% in the last three months until March 31, higher than the previous quarter.