Peso, BAHT Weaken Further As Investors Sell Off Stocks

Although the central bank to defend the local currency peso dollar slipped P43.87.

Thailand, Indonesia and the Malaysian authorities not to intervene in South Korea, Monday to amount of sales in the replacement market in particular stocks in the fighting to protect their money.

The local unit to limit the depreciation of the peso falls Bangkok Central P43.80 P43.89 land for a dollar, traders said, has sold about $ 120 million.

P43.58 by its weight against the dollar ended Friday at P43.87 per dollar 29 cents to close the sheds.

A trader said the stock market decline yesterday, the Philippines and the United States with 4.24%, investors said in a somber mood, and tendency to abuse the situation in the euro area, has led to the capital flight from Asia.

The merchant had followed the euro; Asian currencies last Friday to $ 1.3496 from $ 1.3440 yesterday, said a low blow.

Thai stocks fell nearly 9% stake in the day. 31 with the support of 31.26 per dollar, the break since late January, lightweight, soft as the baht weakened, which is the level just before the event dollar / baht elections earlier this year when Thailand was in denial.

If a weak currency in Thailand by 31, we see the weakening of 31.21 to 31.29.

More sales

Most vendors in emerging markets around the world are constantly looking concerned about the rebound of the euro zone sovereigns in the crisis, such as looking for opportunities to sell these units is dark. Risky assets in the currencies of emerging markets fell sharply in pre-made weakness.

"We have not seen signs of this crisis were more because the fall, USD / Asia will continue to buy" a trader in Singapore said the European bank.

"Asia is expected to remain, including the authorities, but the intervention; only a temporary tool will not be able to stop the trend."

Emerging demand for Asian currencies dollar NDF (NDF) and in the last week were quick to protect the weak local currency was under pressure from institutional investors to leverage. Regional units were built against the dollar position of certain funds.

Last week, the Singapore dollar, once the Reuters Asia, according to calculations based on the data port, lost 4.6% against the U.S. dollar at the central bank had the largest weekly percentage drops. I saw the worst week in more than 15 years, the Indian rupee.

Associated with the overall growth in other emerging market currencies and units fell to the lost. Central Bank of the Brazilian real currency swap limit of his fall, despite $ 2,750,000,000 on sale last week, lost 7.5%.