BLBG:Asia Currencies Drop as Weak U.S., Europe Data Deter Risk-Taking
Asian currencies fell, led by South Korea’s won, after reports showing U.S. companies added the fewest workers in seven months and euro-area unemployment rose to a 15-year high cooled demand for riskier assets.
The won retreated from its strongest level in a month, the Philippine peso slid from near a three-month high and the MSCI Asia-Pacific excluding Japan Index of shares dropped for the first time in eight days. U.S employers hired 119,000 workers last month, compared with a median forecast for 170,000 additions in a Bloomberg survey, data showed yesterday. The euro-area jobless rate rose to 10.9 percent in March, the highest since April 1997, the European Union announced.
“Asian currencies are not on the firm side with risk aversion driving the dollar strength,” said Irene Cheung, a Singapore-based currency strategist at Australia & New Zealand Banking Group. “The euro-area data is clearly weakening and we still expect to see a period of consolidation in U.S. numbers.”
The won dropped 0.3 percent to 1,130.65 per dollar as of 11:32 a.m. in Seoul, according to data compiled by Bloomberg. Malaysia’s ringgit fell 0.1 percent to 3.0320 and the peso retreated 0.1 percent to 42.21.
China’s yuan declined 0.02 percent to 6.3085 per dollar as annual talks between the U.S. and China got underway in Beijing today. The central bank weakened its reference rate 0.04 percent today to 6.2697, after strengthening it 0.53 percent in the four trading days leading up to the discussions, which may address China’s currency policy. The yuan is allowed to trade up to 1 percent on either side of the daily fixing.
Geithner in China
“As the meetings start, there’s less reason for the Chinese central bank to keep record fixings,” said Stella Lee, president of Success Futures & Foreign Exchange Ltd. in Hong Kong. “China won’t allow the yuan to strengthen rapidly as that could hurt exports and growth.”
U.S. Treasury Secretary Timothy F. Geithner and Secretary of State Hillary Clinton are in Beijing for the fourth round of economic dialogue between the world’s two biggest economies. Chinese Vice Premier Wang Qishan will also take part in the discussions.
Elsewhere, Indonesia’s rupiah appreciated 0.1 percent to 9,197 per dollar and Taiwan’s dollar gained 0.1 percent to NT$29.215. Thailand’s baht was little changed at 30.88.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net.
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
