April 26 (Bloomberg) -- Asian currencies weakened for a second day, led by Indonesia’s rupiah, as political violence in the Middle East intensified, sapping demand for emerging-market assets. The Bloomberg-JPMorgan Asia-Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, fell to a one-week low after Syrian security forces attacked the city of Daraa yesterday, killing at least 20 people, in a bid to crush anti-government protests. The MSCI Asia-Pacific Index of regional equities dropped by the most in a week and the euro declined.
“The Middle East situation is quite turbulent at the moment,” said Tetsuo Yoshikoshi, a Singapore-based senior economist at Sumitomo Mitsui Banking Corp. “Traders see the euro being sold and we have seen a correlation between the euro and Asian currencies.”
The rupiah slid 0.7 percent to 8,666 per dollar as of 9:56 a.m. in Jakarta, according to data compiled by Bloomberg. South Korea’s won, Thailand’s baht and the Philippine peso dropped 0.3 percent to 1,084.65, 29.99 and 43.32, respectively.
The rupiah declined the most in three months on speculation the central bank intervened to curb gains that may hurt exports and amid concern U.S. economic growth is slowing.
Gross domestic product in the U.S. rose at a 2 percent annual pace in the first three months of the year from the previous quarter, according to the median estimate of economists surveyed by Bloomberg before data due April 28. That compared with a 3.1 percent annualized gain in the fourth quarter.
‘Investors Are Cautious’
“Bank Indonesia fears that if the currency appreciates too fast it may reduce the country’s export competitiveness,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “Investors are cautious as we’re expecting a lot of important data this week” from the U.S., he said.
South Korea’s won dropped the most in two weeks after the financial regulator said it will audit holdings of currency derivatives at four banks, fanning concern trading curbs will be stepped up to limit bets on appreciation.
The Financial Supervisory Service will inspect transactions conducted by the local branches of Credit Agricole SA and ING Groep NV for four days starting today, while Woori Bank and Standard Chartered First Bank Korea Ltd. will be investigated from May 2, Doh Bo Eun, head of the regulator’s foreign-exchange coordination team, said yesterday.
“There are concerns the authorities will impose financial regulation after it warned of rising short-term debt,” said Cho Young Bok, a currency dealer at Daegu Bank in Seoul. “Anxiety over further regulatory moves is keeping the won low.”
Thai Border Clashes
The baht retreated from a four-month high as Thailand renewed a call for one-on-one talks with Cambodia yesterday after three days of fighting along a disputed border which has killed 11 soldiers.
“Investors are a bit concerned about the conflict between Thailand and Cambodia,” said Sumitomo Mitsui’s Yoshikoshi.
Elsewhere, Taiwan’s dollar was little changed at NT$28.938 against its U.S. counterpart, according to Taipei Forex Inc. Malaysia’s ringgit weakened 0.2 percent to 2.9960 and Singapore’s dollar dropped 0.3 percent to S$1.2373. China’s yuan strengthened 0.03 percent to 6.5256.
“The Middle East situation is quite turbulent at the moment,” said Tetsuo Yoshikoshi, a Singapore-based senior economist at Sumitomo Mitsui Banking Corp. “Traders see the euro being sold and we have seen a correlation between the euro and Asian currencies.”
The rupiah slid 0.7 percent to 8,666 per dollar as of 9:56 a.m. in Jakarta, according to data compiled by Bloomberg. South Korea’s won, Thailand’s baht and the Philippine peso dropped 0.3 percent to 1,084.65, 29.99 and 43.32, respectively.
The rupiah declined the most in three months on speculation the central bank intervened to curb gains that may hurt exports and amid concern U.S. economic growth is slowing.
Gross domestic product in the U.S. rose at a 2 percent annual pace in the first three months of the year from the previous quarter, according to the median estimate of economists surveyed by Bloomberg before data due April 28. That compared with a 3.1 percent annualized gain in the fourth quarter.
‘Investors Are Cautious’
“Bank Indonesia fears that if the currency appreciates too fast it may reduce the country’s export competitiveness,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “Investors are cautious as we’re expecting a lot of important data this week” from the U.S., he said.
South Korea’s won dropped the most in two weeks after the financial regulator said it will audit holdings of currency derivatives at four banks, fanning concern trading curbs will be stepped up to limit bets on appreciation.
The Financial Supervisory Service will inspect transactions conducted by the local branches of Credit Agricole SA and ING Groep NV for four days starting today, while Woori Bank and Standard Chartered First Bank Korea Ltd. will be investigated from May 2, Doh Bo Eun, head of the regulator’s foreign-exchange coordination team, said yesterday.
“There are concerns the authorities will impose financial regulation after it warned of rising short-term debt,” said Cho Young Bok, a currency dealer at Daegu Bank in Seoul. “Anxiety over further regulatory moves is keeping the won low.”
Thai Border Clashes
The baht retreated from a four-month high as Thailand renewed a call for one-on-one talks with Cambodia yesterday after three days of fighting along a disputed border which has killed 11 soldiers.
“Investors are a bit concerned about the conflict between Thailand and Cambodia,” said Sumitomo Mitsui’s Yoshikoshi.
Elsewhere, Taiwan’s dollar was little changed at NT$28.938 against its U.S. counterpart, according to Taipei Forex Inc. Malaysia’s ringgit weakened 0.2 percent to 2.9960 and Singapore’s dollar dropped 0.3 percent to S$1.2373. China’s yuan strengthened 0.03 percent to 6.5256.
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