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Forex News
Sep 11 2008 11:53AM
Emerging FX-Won, rupiah bear brunt of receding risk appetite
    SINGAPORE, Sept 11 (Reuters) - The South Korean won lost a 
further 2 percent against the dollar and the Indonesian rupiah 
tumbled on Thursday as troubles in the U.S. financial sector 
depressed risk appetite. 
    Concerns over Lehman Brothers' ability to raise capital and 
the broader anxiety about global growth pushed the dollar to a 
one-year high against the euro <EUR=> and weighed on 
high-yielders such as the Australian dollar <AUD=>. 
    The rupiah <IDR=> fell more than 1 percent to 9,475 per 
dollar, its weakest since late January. Traders said Bank 
Indonesia had intervened, selling dollars. 
    "It is pretty much a risk aversion move, on the back of the 
U.S. financial sector stress," JPMorgan analyst Yen Ping Ho said, 
while adding that emerging market high-yielders were feeling the 
stress of this drop in risk appetite. 
    The won fell to levels close to 1,114 per dollar, hurt by 
foreigners' continued selling of Korean equities and despite 
suspected intervention by the authorities. 
    Before the local South Korean market opened, Vice Finance 
Minister Bae Kook-hwan said authorities would intervene when 
speculators unsettle dealings in the currency. 
    Traders said a decision by the Bank of Korea to leave 
interest rates steady at 5.25 percent -- a seven-year high -- did 
not impact the won. 
    The Taiwan dollar <TWD=TP> was another big loser as traders 
positioned for the currency to underperform against its peers 
after its trade account swung to a deficit and owing to foreign 
portfolio outflows. 
    It fell nearly half a percent to a seven-month low on the 
weaker side of 32 per U.S. dollar. 
    "We remain long USD/TWD as the most straightforward long 
dollar in Asia," Lehman Brothers said in a note. 
    "A break of the psychologically important 32.0 on spot will 
open up 32.5 in the minds of the markets." 
 CURRENCIES VS U.S. DOLLAR   
 Change on the day at 0549 GMT 
 Currency    Latest bid   Previous day    Pct Move 
 Japan yen       107.34         107.68       +0.32 
 Sing dlr        1.4398         1.4391       -0.05 
 Taiwan dlr      32.015         31.863       -0.47 
 Korean won     1109.40        1091.25       -1.64 
 Baht             34.67          34.60       -0.20 
 Peso             47.06          46.95       -0.23 
 Rupiah         9435.00        9325.00       -1.17 
 Rupee            45.40          45.10       -0.66 
 Ringgit         3.4670         3.4570       -0.29 
 Yuan            6.8443         6.8385       -0.08 
 Change so far in 2008 
 Currency    Latest bid  End prev year    Pct Move 
 Japan yen       107.34         111.33       +3.72 
 Sing dlr        1.4398         1.4382       -0.11 
 Taiwan dlr      32.015         32.443       +1.34 
 Korean won     1109.40         935.70      -15.66 
 Baht             34.67          33.68       -2.86 
 Peso             47.06          41.28      -12.28 
 Rupiah         9435.00        9390.00       -0.48 
 Rupee            45.40          39.41      -13.19 
 Ringgit         3.4670         3.3050       -4.67 
 Yuan            6.8443         7.3041       +6.72 
 (Reporting by Vidya Ranganathan; editing by Neil Fullick) 
(([email protected]; +65-68703090; Reuters 
Messaging: [email protected])) 
    For the new Reuters scrolling global forex service please 
click <FXNEWS> 
  ((Multimedia versions of Reuters Top News are now available for: 
 * 3000 Xtra    : visit http://topnews.session.rservices.com 
 * BridgeStation: view story .134 
For more information on Top News, please visit 
http://topnews.reuters.com)) 
    Double click on brackets for following items: 
    Asian currencies   <AFX=>   Asian currencies in Asia <AFX=A> 
    Malaysian ringgit  <MYRX=>  Indonesian rupiah  <IDRX=> 
    Singapore dollar   <SGDX=>  Thai baht          <THBX=> 
    Taiwan dollar      <TWDX=>  Hong Kong dollar   <HKDX=> 
    Philippine peso    <PHP=>   Korean won         <KRW=> 
    SPEED GUIDES <MONEY>  <ASEAN=> 
    Exotic currencies  <EXOTIC/1>    Non-G7 currencies  <CCY/1> 
    RELATED NEWS AND OTHER TOPICS 
    All Singapore news [SG]    All Malaysian news [MY] 
    Thailand [TH] Indonesia [ID] Hong Kong [HK] Taiwan [TW] 
    Philippines [PH] Korea [KR] All emerging markets [EMRG] 
    All foreign exchange news    [FRX] 
    Foreign exchange technical analysis    [FRX&INSI] 
Keywords: MARKETS ASIA FOREX 
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