SINGAPORE, Jan 24 — The South Korean won saw the worst week in seven months today, leading weekly losses among emerging Asian currencies that have been hit by worries over China’s slowing economy and expected further cut in the US Federal Reserve’s stimulus.
The won lost 1.9 per cent against the dollar for the week, its largest weekly percentage loss since the week ended June 21, according to Thomson Reuters data.
Offshore funds continued to sell the won, pushing it today to 1,080.5 to the greenback, its weakest since September 17.
Malaysia’s ringgit has slid 1.0 per cent against dollar on selling from offshore funds including real money accounts, while the central bank was suspected of intervening to limit losses, traders said.
The Indian rupee has weakened 0.9 per cent.
The Philippine peso, the Indonesian rupiah and the Taiwan dollar fell 0.7 per cent, respectively.
The Singapore dollar has been down 0.2 per cent.
The outlook for emerging Asian currencies remained murky after a disappointing China’s manufacturing survey added to risk aversion, traders and analysts said.
In addition, the Fed is seen cutting another US$10 billion (RM33.3 billion) in the central bank’s monthly bond purchases at the January 28-29 meeting on a solid recovery in the world’s top economy.
Emerging Asian economies will contribute less to global growth this year than earlier expected even as their major trading partners in the West show signs of recovery, a Reuters poll showed. — Reuters
