Wednesday, February 13, 2008

Asian Currencies Improve

by Michelle Roberts

Amidst the growing fear of the effect of the US economic slowdown on world economy the currencies in Asia did well. Among the Asian currencies that recorded a rise, the dollar of Taiwan did pretty well in the market as it reached to its highest position in twenty months. The reason given for the rise is that investors purchased the assets of the region speculating that the economic growth will be able to survive the credit market losses all over the world. Currencies of nations like South Korea, the ringgit of Malaysia, and also the dollar of Singapore gained in the market due to the improvement in the stock markets of Asia. When millionaire and stock market investor Warren Buffet announced his offer to take up liabities from the world’s largest bond insurers, the Asian stock markets recorded an improvement. Out of the ten Asian currencies which are mostly exchanged seven Asian currencies recorded an improvement and got strengthened. Donald Amstad who heads the fixed income for Aberdeen Asset Management Plc, which is the biggest independent money manager in Scotland, said that the Asian currencies are worth their value and this part of the world today is in a pretty good form when compared with the remaining of the world.

The Taipei Forex Inc. said that the dollar of Taiwan recorded an addition of 0.8% to NT$31.636 per dollar. This addition of the Taiwanese dollar is the highest since May of 2007. The won of South Korea as per the Seoul Money Brokerage Services Ltd. also climbed by 0.1% to 944.65, from 945.50. The dollar of Singapore rose by 0.2% and stood at $1.4162. In the matter of the gain of the Taiwan dollar chief currency strategist at Morgan Stanley in London, Stephen Jen said that the gain by the Taiwan dollar is likely to have further gains as the Kuomintang party, the opposition in Taiwan is quite sure to win the presidential elections scheduled for the next month. And as the party may have closer ties with China the gain by the Taiwanese dollar may extend further.

A currency trader at Chang Hwa Commercial Bank in Taipei, Pory Shih is of the opinion that investors seem to be very buoyant on the Taiwanese dollar and foreign fund inflows can be witnessed at the market. Exporters seem to be doing away with the US dollar in favor of the Taiwan dollar. The won of South Korea also gained as the stock market of the country rose which was the result of the rise in the equity market of the United States. The loss of two days in the currency also ended with this gain in the won. Interest rates remained unchanged at 5% by the Bank of Korea. The gains in the won of South Korea were expected as the Wall Street witnessed an overnight jump. The Malaysian ringgit also gained owing to the MSCI Asia Pacific Index of regional stocks which rose by 1.2%.

 

 

 

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