The South Korea’s won led other Asian currencies in tumbling down for the fourth week, driven by Japan’s unprecedented monetary stimulus as well as the possibility of an increase in U.S. interest rates, which boosted the dollar.
The won dropped 1.2 percent over the week to trade at 1,113.76 per dollar. The Taiwan dollar fell 0.8 percent to NT$31.005, making it the first time since 2010 for the currency to depreciate beyond NT$31 versus the dollar. The India’s rupee declined 0.2 percent to 61.8475 while the Malaysia’s ringgit slid 0.2 percent to 3.3552.
“The very sharp deterioration in the yen would probably be one of the biggest influencing factors on Asian currencies,” Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd, told Bloomberg News.
Meanwhile, the Philippine peso plunged 0.1 percent to 44.975, as the Thailand baht fell to 32.810. The Indonesia’s rupiah depreciated 0.5 percent to 12,150 as the China’s yuan rose 0.09 percent to 6.1249. The Vietnam’s dong fell 0.2 percent to trade at 21,375.
The Russia’s ruble advanced as traders keenly monitored the situation in Ukraine, where pro-Russian separatists are seeking independence from Kiev. The ruble surged 0.8 percent to trade at 45.7695 per dollar as of 6:51 p.m., paring its losses since Feb. 28, a day before President Vladimir Putin invaded Crimea, to 22 percent.
The yield on the ruble-denominated bonds that mature in February 2027 declined three basis points to 10.15 percent, resulting in a total advance of 179 basis points since Feb. 28. The Micex Index gained 0.5 percent to 1,538.64, boosting its gain to 6.5 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com