The euro has been worn down in recent weeks by worries over the fiscal health of Greece and took a blow on Tuesday from a disappointing survey of German investor sentiment. Shares in China and Hong Kong fell on reports that China had told some big banks to stop lending for the rest of January in a further move to keep the economy from overheating.
Dollar was bid up in offshore NDF markets against most Asian currencies. One-month dollar/won NDFs traded near 1,129 late on Tuesday. The dollar was also boosted by news that China was curbing bank lending, traders said. One-month dollar/rupiah NDFs rose to 9,310 from a close of 9,270 on Tuesday. Dollar/peso NDFs rose to 46.11 from 46.00, but most investors did not expect the dollar rally in Asia to last long.
RINGGIT The Malaysian ringgit trimmed losses to 0.39 percent, to around 3.3510 versus dollar, by midday from its morning low of 3.3565 as sustained selloffs of euro pulled down all Asian currencies. "The ringgit is sticking with Asian peers after the massive euro stoploss sell downs since yesterday. But ringgit's further fall will be limited by the next major resistance of 3.3590. "A positive Malaysian December headline inflation due out later today will not affect the ringgit," a trader in Kuala Lumpur said. The ringgit has appreciated 2.12 percent versus dollar so far this year.
WON The South Korean won hit its weakest in almost two weeks on falls in the euro amid worries about Greek fiscal problems and lingering caution over intervention by the foreign exchange authorities. The won was quoted near 1,131.2/USD, compared with the previous session's domestic close of 1,127.5. The local currency fell as weak as 1,133.2, the weakest since January 8.
"Given the falling euro, the won may weaken to 1,144 or 1,145 (per dollar)," a trader said. The euro is seen falling further and that will push down the won as investors follow the euro more than the yen," said an analyst at a futures firm. Seoul shares up 0.12 percent as foreigners bought a net 58.3 billion won worth of stocks.
BAHT Thai baht tracked weaker Asian currencies down versus the dollar, influenced by euro's sharp losses in active early trade, but dealers saw the baht's 0.15 percent overnight retreat as temporary. "It ranges 32.88-93 before settling down at around 32.90. The dollar is rebounding against most currencies this week but this is probably short-lived. The baht remains bullish on the longer perspective," a trader said. Dollar/baht was bid at 32.90 against 32.85 late on Tuesday.