FLGS – Global Finance Report

Asian currencies weaken, led by the South Korean won and Philippine peso against the dollar on concern China will restrict kredi to hold regional export demand.

The MSCI Asia-Pacific Index dropped to the lowest level during 2010 after Reuters reported several banks in China to provide cash to increase reserves. Pressure on the won continues triggered by a report that GDP fell to 0.2% in the quarter IV of 3.2% the previous period.

“Asian Currency weakens influenced China talks about the possibility of doing the tightening and asked a number of banks to raise reserve ratios again. This led to indiscriminate selling Asian currencies, the yen strengthened on the other hand,” said Joanna Tan, a regional economist Forecast Singapore Pte.

Won weakened 1.3% to 1165.50 per U.S. dollar at 2:18 pm in Seoul and had time to reach 1166.50, its lowest level this year. Peso weakened 0.5% to 46.47 and the Malaysian ringgit to be depressed 0.6% 3.4205. Rupiah also down 0.4% to 9380.

China’s central bank earlier this month the bank raised compulsory registration deposits 0.25% to 16% to keep credit growth and prevent asset bubbles in shares and property.

Reports of credit tightening reduces the demand for shares in China market. This causes the Shanghai Composite Index fell 2.3%. While the external market is also down.

On the other hand, the yen and U.S. dollar gained on the euro. The yen strengthened to 126.44 per euro in Tokyo, from 127.75 in New York yesterday. U.S. dollar increased to USS1, 4092 per euro.

Taiwan dollar strengthened encouraged by government reports of a record increase in manufacturing production. The data that was launched this month showed Taiwan exports rise in line with the decline in the unemployment rate. Achievement was raised currencies to its highest level since September 2008.

“Taiwan dollar appreciation as a result of moving the entry of hot money into Asia, including Taiwan. The central bank is always in the market to overcome the high volatility,” said Tarsicio Tong, forex dealers Union Bank of Taiwan in Taipei.

South Korea’s economic growth slowed during the quarter IV exceeded the median estimate of the economy. Kim Myung-Kee, the Bank of Korea officials, said the slowdown that occurred in October through December is only temporary adjustment does not affect the national growth momentum.

“Global economic recovery is still in process and should be recognized, not as smoothly and as quickly as expected. So the market is still moving volatile during the quarter I,” said Lindawati Susanto, head of FX Trade PT Bank Resona Perdania in Jakarta.

Singapore dollar weakened 0.4% to S $ 1.4041 per U.S. dollar, Thai baht depressed 0.2% to 33.02. China Yuan unchanged at 6.8269