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Wednesday May 14, 11:19 AMEmerging FX-Asia loses ground on dollar strength, oil pricesSINGAPORE, May 14 (Reuters) - Asian currencies fell against a broadly stronger dollar on Wednesday as investors led by hedge funds moved to cover their short dollar positions amid jitters about record oil prices.The Malaysian ringgit was the top loser in early trade, falling almost 1 percent to 4.245 per dollar at one point. The Singapore dollar fell as far as 1.3775 per U.S. dollar, down three-quarters of a percent. "The Singapore dollar is following other Asian currencies generally," said a trader, adding that investors bought the U.S. currency from 1.3735-60 to stop losses. The Philippine peso hit as low as 42.84 per dollar, down 0.4 percent from previous day's close, reaching its weakest level since late November. A trader in Manila said the Philippine central bank, or BSP, was seen in the currency market selling dollars to support the peso, which has lost 3.5 percent against the dollar so far this year. "I think the next target is 43 but the BSP factor should also be considered as the BSP has the capability to stall any upward pressure (on the dollar) when they want to," said the trader. Asian currencies have been weighed in recent weeks by a combination of factors, heightened risk aversion amid a global credit crisis, a rebound in the dollar and rising oil prices. Oil prices surged to a record near $127 per barrel after OPEC producer Iran said it was studying a plan to cut output. "With the broad bullish dollar theme already underpinning regional pairings, further squeeze was felt as funds were seen covering short positions and establishing fresh longs in dollar versus regionals," said Vishnu Varathan, an analyst at FORECAST. The dollar inched higher against the yen after stronger-than-expected U.S. retail sales data on Tuesday supported views that the Federal Reserve would keep interest rates steady next month. After a series of cuts the benchmark U.S. interest rate now stands at 2 percent, lower than the policy rate in any emerging Asian economy. Market players are now waiting for the release of the U.S. consumer price index later on Wednesday for further clues on whether the Fed will hold rates steady at its next policy meeting in June. CURRENCIES VS U.S. DOLLAR Change on the day at 0302 GMT Currency Latest bid Previous day Pct Move Japan yen 104.62 103.64 -0.94 Sing dlr 1.3751 1.3671 -0.58 Taiwan dlr 30.976 30.873 -0.33 Korean won 1046.90 1042.10 -0.46 Baht 32.37 32.22 -0.46 Peso 42.78 42.66 -0.28 Rupiah 9285.00 9244.00 -0.44 Ringgit 3.2485 3.2140 -1.06 Yuan 6.9970 6.9889 -0.12 Change so far in 2008 Currency Latest bid End prev year Pct Move Japan yen 104.62 111.33 +6.41 Sing dlr 1.3751 1.4382 +4.59 Taiwan dlr 30.976 32.443 +4.74 Korean won 1046.90 935.70 -10.62 Baht 32.37 33.68 +4.05 Peso 42.78 41.28 -3.51 Rupiah 9285.00 9390.00 +1.13 Rupee 42.10 39.41 -6.39 Ringgit 3.2485 3.3050 +1.74 Yuan 6.9970 7.3041 +4.39 (Reporting by Kevin Yao; Editing by Tomasz Janowski) |
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