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Friday July 4, 11:15 AMEmerging FX-Peso and won extend losses on inflation concernsSINGAPORE, July 4 (Reuters) - The Philippine peso and South Korean won led losses among the weaker Asian currencies on Friday as investors turned wary of intensifying inflationary pressures, negative real yields and growth in the region.Regional currencies were also weighed down by a broadly stronger U.S. dollar, which extended gains against other major currencies on Friday after U.S. payroll data the previous day came in close to expectations. [ID:nN03454467] The peso inched down by 0.4 percent to 45.7 against the dollar, its weakest since September 19 last year, as concerns over rising food and oil prices weighed on the local currency. Traders said they suspected the Philippines central bank had intervened by selling dollars to support the struggling currency. "The central bank was selling dollars earlier today at 45.70 per dollar, and now they are in at 45.52," a Manila-based trader said. Philippine annual consumer inflation in June rose to 11.4 percent, its highest level since May 1994. The central bank said on Friday that inflationary pressures would moderate as monetary policy is tightened, signalling it would raise interest rates at its July 17 policy-setting meeting. "Inflation has eroded the real interest rate cover for the peso and we think the trend is your friend. We expect the dollar/peso to hit 46.0 in the third quarter," ING said in a note. The South Korean won fell by 0.4 percent to 1,049.7 per dollar, pressured by growth concerns from soaring oil prices , which hit a record high near $146 per barrel on Thursday. "The fundamentals itself strongly support a weaker won - high oil prices, inflation, deficit in the trade balance, lower stock prices - but the government is trying its best to contain inflation by intervening," said Seoul-based trader Nam Kyu Kim at ING. Traders said they were on the look-out for intervention by the Korean authorities, as they suspected the central bank had sold dollars to support the won several times this week. CURRENCIES VS U.S. DOLLAR Change on the day at 0235 GMT Currency Latest bid Previous day Pct Move Japan yen 106.65 106.00 -0.61 Sing dlr 1.3604 1.3578 -0.19 Taiwan dlr 30.413 30.390 -0.08 Korean won 1046.80 1045.00 -0.17 Baht 33.39 33.35 -0.12 Peso 45.52 45.50 -0.04 Rupiah 9215.00 9205.00 -0.11 Rupee 43.29 43.29 0.00 Ringgit 3.2650 3.2650 0.00 Yuan 6.8606 6.8510 -0.14 Change so far in 2008 Currency Latest bid End prev year Pct Move Japan yen 106.65 111.33 +4.39 Sing dlr 1.3604 1.4382 +5.72 Taiwan dlr 30.413 32.443 +6.67 Korean won 1046.80 935.70 -10.61 Baht 33.39 33.68 +0.87 Peso 45.52 41.28 -9.31 Rupiah 9215.00 9390.00 +1.90 Rupee 43.29 39.41 -8.96 Ringgit 3.2650 3.3050 +1.23 Yuan 6.8606 7.3041 +6.46 (Reporting by Melissa Chia; Editing by Neil Fullick) |
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