During early deals on Monday, the South East Asian currencies declined to new multi-day lows against the US dollar as a fall in Asian stocks reduced demand for emerging-market assets. On the other hand, the Hong Kong currency climbed to a 3-month high versus the greenback.
The major markets across the Asia-pacific region are trading lower today morning, taking cues from Wall Street, where the markets ended in negative territory on Friday, as investors resorted to profit taking following recent rally. Commodity prices declined on concerns that the plan for revival of the financial sector may get delayed, rekindling worries about the recession in the global economy.
Market participants keenly await the outcome of the G-20 meeting where the recent initiatives proposed by the US administration to unclog the credit markets by helping banks sell toxic assets, and the reactions to the same from the European counterparts will decide the future course of action for the global economy. Fundamentally, the economic indicators are still very weak and the signs of recovery are not encouraging.
On Friday, the Dow closed down 148.38 points or 1.9% at 7,776.18, the Nasdaq closed down 41.80 points or 2.6% percent at 1,545.20 and the S&P 500 closed down 16.92 points or 2% at 816.
In Asian trading, crude oil is currently down $0.93 at $51.45 a barrel, in electronic trading. Light sweet crude for May delivery closed at $52.34 per barrel on the New York Mercantile Exchange on Friday, down $1.96 a barrel.
During early deals on Monday, the Singapore dollar showed weakness against the US currency. At 9:45 pm Eastern time, the Singapore currency dropped to an 11-day low of 1.5201 against the US dollar, compared to last week's close of 1.5146. The pair is presently trading at 1.5187 with 1.5345 seen as the next target level.
At 10:45 pm ET Sunday, the Philippine peso edged down to a 10-day low of 48.460 against the US dollar. This may be compared to Friday's close of 48.06. If the peso ticks down further, support is seen at the 48.6 level. Currently, the dollar-peso pair is quoted at 48.45.
The Chinese yuan edged down against the US dollar during Monday's early Asian deals. At 11:30 pm ET, the yuan declined to a 1-week low of 6.8403 against the dollar, compared to Friday's closing value of 6.8325. If the Chinese currency falls further, 6.844 is seen as the next target level.
The People's Bank of China has set today's central parity rate for the dollar-yuan pair at 6.8340.
Against the US dollar, the Thai baht edged down during Monday's early deals. At 9:50 pm ET, the Thailand currency slipped to a 5-day low of 35.56 against the US dollar, compared to 35.41hit late New York Friday. The dollar-baht pair is presently trading at 35.49 with 35.8 seen as the next target level.
Monday morning in Asia, the Malaysian currency lost ground against its U.S. opponent. The ringgit reached a 5-day low of 3.64 versus the greenback by 8:15 pm ET, compared to Friday's close of 3.6175. On the downside, the ringgit is likely to find support near the 3.646 level and the dollar-ringgit pair is presently worth 3.636.
The South Korean won slipped to a 5-day low of 1380.90 against the US dollar during at 10:05 pm ET Sunday. The dollar-won pair that closed Friday's deals at 1345.10 is currently trading at 1371.45. If the South Korean currency falls further, 1393.6 is seen as the next target level.
South Korea's current account balance in February shifted to a surplus of 3.68 billion dollars, the Bank of Korea said today, following the 1.64 billion dollars deficit in January.
The Indian rupee staged a sharp fall against the US dollar at 11:35 pm ET Sunday. The rupee thus declined to a 5-day low of 51.00 against the dollar, compared to last week's closing value of 50.53. On the downside, 51.15 is seen as the next target level for the Indian currency.
The Taiwan dollar dropped to a 4-day low of 33.942 against the greenback on Monday morning in Asia. The pair, which closed last week's deals at 33.772, is currently trading at 33.9.
The Hong Kong dollar surged to a 3-month high of 7.749 against the US currency at 8:40 pm Eastern time Sunday. The pair is currently trading near last week's closing value of 7.7502. On the upside, 7.748 is seen as the next target level for the Hong Kong currency.
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