Forex trends: dollar gains vs most Southeast Asian majors on Asian stocks drop

image During Thursday’s Asian trading, US currency surged versus most Southeast Asian currencies as a slump in most Asian stocks decreased demand for emerging market assets. Thus, the currencies of South Korea, Philippine, Thailand, Malaysia, China, Taiwan and Singapore dropped against the greenback.

Most of the Stock markets across the Asia Pacific are trading lower today with the overnight weak close on Wall Street pushing participants on to a defensive mood. Markets in Hong Kong, South Korea, Shanghai, Singapore, New Zealand and Taiwan are trading notably lower. The Japanese and Indonesian stock markets are trading in positive territory with notable gains.

Thursday morning in Asia, the Malaysian currency showed weakness against its US counterpart. The ringgit reached a low of 3.481 against the dollar by 8:50 pm ET, down 0.6 percent from yesterday’s fresh 2009 high of 3.4615. USD/MYR pair, which closed Wednesday’s deals at 3.4675, is currently worth 3.4774 with 3.49 seen as the next target level.

The Philippine peso plunged to 47.59 against the US dollar on Thursday morning in Asia, compared to yesterday’s close of 47.27. On the downside, the peso is likely to test support around the 47.68 level.

The Taiwan dollar lost ground against the US dollar during early Asian trading on Thursday. The domestic currency dropped to a 2-day low of 32.4095 against the greenback by 9:10 pm ET, compared to Wednesday’s New York session closing value of 32.357. On the downside, 32.47 is seen as the next target level for the Taiwan dollar.

The Singapore dollar dropped to a 2-day low of 1.4175 against the US dollar in early Asian trading on Thursday, down from yesterday’s 1-year high of 1.4076. If the domestic unit declines further, support is seen around the 1.42 level. The pair closed yesterday’s deals at 1.4135.

During Thursday’s early Asian deals, the South Korean won declined to 1198.10 against the dollar. The next downside target level for the Korean currency is seen at 1210.10. USD/KRW pair was worth 1192.60 at Wednesday’s close.

Extending its 2-day winning streak, the Indian rupee advanced to 47.83 against the US dollar on Thursday morning in Asia. This set the highest level for the rupee since August 14. On the upside, resistance is likely to be seen around the 47.78 level for the domestic currency.

The Chinese yuan traded lower against its US counterpart during Thursday’s early Asian trading. The yuan is now trading at 6.8310 versus the buck, and if it declines further 6.833 is seen as the next target level. At yesterday’s New York session close, the pair was quoted at 6.8271.


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