Thai Baht Has Weekly Loss on Outflows, Politics; Bonds Advance
By Shanthy Nambiar
Aug. 1 (Bloomberg) -- Thailand's baht completed a second weekly decline on speculation overseas investors are selling the nation's assets amid decade-high inflation and political risks. Ten-year government bonds advanced.
The currency traded near a two-week low after the Bangkok Criminal Court yesterday convicted the wife of former Prime Minister Thaksin Shinawatra and her brother of tax evasion. Inflation accelerated to 9.2 percent in July from a year earlier, the fastest since 1998, the government said today.
``The downside for the baht is coming from the political front,'' said Enrico Tanuwidjaja, an economist at Oversea- Chinese Banking Corp. in Singapore. ``Capital outflows will also play a part in determining the currency's movements. The central bank has been watching the currency.''
The baht declined 0.4 percent this week to 33.54 per dollar as of 4:36 p.m. in Bangkok, according to data compiled by Bloomberg. It has fallen 5.7 percent over the past three months, the worst performance among the 10 most-traded currencies in Asia outside Japan.
The local currency may fall to 35 by the end of September, Tanuwidjaja said.
The baht ``has moved in line with regional currencies,'' Amara Sriphayak, a Bank of Thailand official, said yesterday. ``The central bank is taking care of the baht. Stock sales have pressured the currency.''
Rising Prices
Ten-year bonds advanced as investors sought the relative safety of government debt as the benchmark stock index dropped 1.2 percent this week.
The yield on the 5.125 percent note due March 2018 slid 15 basis points today to 4.97 percent, according to the Thai Bond Market Association. The price rose 1.12, or 11.2 baht per 1,000 baht face amount, to 101.18. The securities completed a fifth winning week.
The central bank this week said consumer prices in 2008 may rise at the fastest in 11 years. The inflation rate is forecast at between 7.5 percent and 8.8 percent, according to Assistant Governor Duangmanee Vongpradhip.
Policy makers on July 16 raised the one-day bond repurchase rate by a quarter-percentage point to 3.5 percent. Global funds sold over $1 billion more Thai stocks than they bought last month, according to data compiled by Bloomberg.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Baht What up with Dat?????
Come on 35
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LoveDaBlues
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LoveDaBlues
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Well the fox is in the Hen house wonder how this is going to go?
BOT should step back from monetary policy : new deputy finance
By Wichit Chaitrong
The Nation
Deputy Finance Minister Suchart Thada-Thamrongvech signals on Thursday that the government wants the Bank of Thailand to "step back" on its monetary policy.
"So far, the monetary policy of the BOT governor (Tarisa Watanagase) has been in the opposite way of the government's policy. The government wants to stimulate the economy, but the BOT has done the opposite thing," Suchart told a seminar earlier today.
He said he would meet BOT Deputy Governor Atchana Waiquamdee later today and would talke about the monetary policy issue with her.
And that he would discuss with the central bank about its stance on monetary policy.
"If they (BOT) still insist to continue the policy, either they or we must step back. The government must have its own stance like what they've implemented in the overseas," Suchart said.
He was speaking on his second day in office.
He said he would discuss about this issue with Finance Minister Surapong Suebwonglee and Virabongsa Ramangura, the chief economic advisor to the government.
BOT should step back from monetary policy : new deputy finance
By Wichit Chaitrong
The Nation
Deputy Finance Minister Suchart Thada-Thamrongvech signals on Thursday that the government wants the Bank of Thailand to "step back" on its monetary policy.
"So far, the monetary policy of the BOT governor (Tarisa Watanagase) has been in the opposite way of the government's policy. The government wants to stimulate the economy, but the BOT has done the opposite thing," Suchart told a seminar earlier today.
He said he would meet BOT Deputy Governor Atchana Waiquamdee later today and would talke about the monetary policy issue with her.
And that he would discuss with the central bank about its stance on monetary policy.
"If they (BOT) still insist to continue the policy, either they or we must step back. The government must have its own stance like what they've implemented in the overseas," Suchart said.
He was speaking on his second day in office.
He said he would discuss about this issue with Finance Minister Surapong Suebwonglee and Virabongsa Ramangura, the chief economic advisor to the government.
"Selling dollars to stall dollar growth" . Sorry I just don't get this. Inflation is a huge problem, oil seems to be the main culprit in infaltion. As the dollar get stronger the cost of oil goes down. Why would anyone want to stall it.
Now if you purchased oil in baht I could understand it, but the dollar is used to purchase oil.
What am I missing?
I wonder how long the BOT can continue down this road they have already been on it for sometime. When is the money supposed to hit the country to stimulate the economy. Or is that smoke screen because of inflation.
Now if you purchased oil in baht I could understand it, but the dollar is used to purchase oil.
What am I missing?
I wonder how long the BOT can continue down this road they have already been on it for sometime. When is the money supposed to hit the country to stimulate the economy. Or is that smoke screen because of inflation.
Thai Baht Rises From 1-Month Low on Central Bank; Bonds Decline
By Shanthy Nambiar
Aug. 7 (Bloomberg) -- Thailand's baht rebounded from a one- month low on speculation the central bank will support the currency. Government bonds fell.
The currency reversed a decline after touching 33.76 a dollar, the weakest since July 9, as Amara Sriphayak, a central bank official, said last week that the Bank of Thailand is ``taking care'' of the currency. The baht has dropped 0.5 percent this quarter, the fourth-biggest decliner among Asia's 10 most-traded currencies.
``The Bank of Thailand has been in the market quite consistently,'' said Vishnu VarathThai Baht Rises From 1-Month Low on Central Bank; Bonds Decline
By Shanthy Nambiar
Aug. 7 (Bloomberg) -- Thailand's baht rebounded from a one- month low on speculation the central bank will support the currency. Government bonds fell.
The currency reversed a decline after touching 33.76 a dollar, the weakest since July 9, as Amara Sriphayak, a central bank official, said last week that the Bank of Thailand is ``taking care'' of the currency. The baht has dropped 0.5 percent this quarter, the fourth-biggest decliner among Asia's 10 most-traded currencies.
``The Bank of Thailand has been in the market quite consistently,'' said Vishnu Varathan, an economist at Forecast Singapore Pte. The central bank, has been ``selling dollars to stall the dollar rally. We are seeing ongoing outflows,'' he said.
The baht traded at 33.60 per dollar as of 4:35 p.m. in Bangkok, little changed from yesterday, according to data compiled by Bloomberg.
The Thai currency has weakened about 5.5 percent in the past three months on concern global funds will sell their local holdings amid political turmoil.
Allegations that Prime Minister Samak Sundaravej is a proxy for former leader Thaksin Shinawatra have led to street protests that called for the premier to quit. Global funds sold $81.5 million more Thai stocks than they bought this week, according to data compiled by Bloomberg.
Ten-year bonds declined. The yield on the 5.125 percent note due March 2018 rose 5.4 basis points to 4.963 percent, according to the Thai Bond Market Association. The price fell 0.41518, or 4.1 baht per 1,000 baht face amount, to 101.1997.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 7, 2008 05:45 EDT an, an economist at Forecast Singapore Pte. The central bank, has been ``selling dollars to stall the dollar rally. We are seeing ongoing outflows,'' he said.
The baht traded at 33.60 per dollar as of 4:35 p.m. in Bangkok, little changed from yesterday, according to data compiled by Bloomberg.
The Thai currency has weakened about 5.5 percent in the past three months on concern global funds will sell their local holdings amid political turmoil.
Allegations that Prime Minister Samak Sundaravej is a proxy for former leader Thaksin Shinawatra have led to street protests that called for the premier to quit. Global funds sold $81.5 million more Thai stocks than they bought this week, according to data compiled by Bloomberg.
Ten-year bonds declined. The yield on the 5.125 percent note due March 2018 rose 5.4 basis points to 4.963 percent, according to the Thai Bond Market Association. The price fell 0.41518, or 4.1 baht per 1,000 baht face amount, to 101.1997.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 7, 2008 05:45 EDT
I certainly understand what you are saying. A if we were dealing with what we saw a year ago. Might work, but when oil has done what it has. I don't think so.
Simply because it is purchased by dollars, lower dollar = higher oil. The core cause of inflation.
I thought intereset rates were the way to go, seems to have real a effect. I don't see that any country is going to avoid the downturn to some extent and will just have to ride it.
In 97 part of the problem was currency manipulation, although in the other direction. I think a key factor in bringing inflation in line is the cost of oil.
Well I guess we are about to see if there is another lesson to be learned, based on the rate of exchange this morning they are not able to conrol it. Unless thier target range is somewhere between 33 an 34. Cause the dollar was up agian this morning. They may be spending thier assets to do this when the money could be used for long term improvements that in the end will really help Thailand.
Does make one wonder what happened to the basket of currency application.
Could National Pride and politics be effecting good judgement?
Simply because it is purchased by dollars, lower dollar = higher oil. The core cause of inflation.
I thought intereset rates were the way to go, seems to have real a effect. I don't see that any country is going to avoid the downturn to some extent and will just have to ride it.
In 97 part of the problem was currency manipulation, although in the other direction. I think a key factor in bringing inflation in line is the cost of oil.
Well I guess we are about to see if there is another lesson to be learned, based on the rate of exchange this morning they are not able to conrol it. Unless thier target range is somewhere between 33 an 34. Cause the dollar was up agian this morning. They may be spending thier assets to do this when the money could be used for long term improvements that in the end will really help Thailand.
Does make one wonder what happened to the basket of currency application.
Could National Pride and politics be effecting good judgement?
L D B I hope you are reading this thread because your educated man and I would like to hear your opinion every body knows mine I will repeat it the Thai banks/gov. are inflating the bot I said that two years ago and every one said I was wrong well it looks like I was not to far off the mark
Bump & I disagreed along with a few other poster I am interested in your opinion
Bump & I disagreed along with a few other poster I am interested in your opinion
Thai Baht Falls as Importers Buy Dollars; 10-Year Bonds Rise
By Shanthy Nambiar
Aug. 11 (Bloomberg) -- Thailand's baht declined for a second day on speculation higher oil prices will increase demand for dollars from importers. Ten-year government bonds advanced.
The baht extended this month's 0.7 percent drop. Crude oil rose from a 14-week low in New York, gaining as much as 1.5 percent to $116.90 a barrel on concern the Russia-Georgia conflict may disrupt supplies. Thailand imports almost all its fuel.
``Some Thai importers are buying dollars, which is up against the other Asian currencies as well,'' said Paisarn Lertkowit, a currency trader at Bangkok Bank Pcl, the nation's biggest. ``The bias is for the dollar to go up.''
The baht declined 0.1 percent to 33.73 per dollar as of 4:10 p.m. in Bangkok, according to data compiled by Bloomberg. It declined 0.5 percent last week. The currency may fall to 33.80 this week, Paisarn said.
The Southeast Asian nation's trade surplus narrowed to $926 million in June, compared with $1.27 billion in May, the central bank said July 31. Imports grew 31.5 percent to $15.2 billion, quickening from 15.7 percent the previous month.
Thailand's Supreme Court today issued arrest warrants for former Thai Prime Minister Thaksin Shinawatra and his wife after they skipped bail and reportedly fled to the U.K. to avoid corruption charges.
Political Drama
The court confiscated 8 million baht ($237,000) in bail after ``the two defendants failed to show up,'' it said in a statement. The couple has flown to London, the Bangkok Post reported earlier today.
``Investors have been shuffling uncomfortably as political dramas play out,'' Vishnu Varathan, an economist at Forecast Singapore Pte., wrote in an e-mailed report. ``Against a backdrop of a stronger greenback and on the grounds that central bank intervention to cap baht weakness is not sustainable, we see the dollar heading higher.''
Ten-year government bonds advanced. The yield on the 5.125 percent note due March 2018 fell 5 basis points to 4.9 percent, according to the Thai Bond Market Association. The price rose 0.40337, or 4 baht per 1,000 baht face amount, to 101.6789.
Deputy Finance Minister Suchart Thadathamrongvej last week said the nation ``shouldn't raise the interest rate,'' because it will ``lower growth.'' The Southeast Asian's major ``problem is political instability,'' he said.
The $206 billion economy may expand between 4.8 percent and 5.8 percent in 2008, the central bank predicted on July 28, short of the Finance Ministry's target for 6 percent expansion.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 11, 2008 05:35 EDT
By Shanthy Nambiar
Aug. 11 (Bloomberg) -- Thailand's baht declined for a second day on speculation higher oil prices will increase demand for dollars from importers. Ten-year government bonds advanced.
The baht extended this month's 0.7 percent drop. Crude oil rose from a 14-week low in New York, gaining as much as 1.5 percent to $116.90 a barrel on concern the Russia-Georgia conflict may disrupt supplies. Thailand imports almost all its fuel.
``Some Thai importers are buying dollars, which is up against the other Asian currencies as well,'' said Paisarn Lertkowit, a currency trader at Bangkok Bank Pcl, the nation's biggest. ``The bias is for the dollar to go up.''
The baht declined 0.1 percent to 33.73 per dollar as of 4:10 p.m. in Bangkok, according to data compiled by Bloomberg. It declined 0.5 percent last week. The currency may fall to 33.80 this week, Paisarn said.
The Southeast Asian nation's trade surplus narrowed to $926 million in June, compared with $1.27 billion in May, the central bank said July 31. Imports grew 31.5 percent to $15.2 billion, quickening from 15.7 percent the previous month.
Thailand's Supreme Court today issued arrest warrants for former Thai Prime Minister Thaksin Shinawatra and his wife after they skipped bail and reportedly fled to the U.K. to avoid corruption charges.
Political Drama
The court confiscated 8 million baht ($237,000) in bail after ``the two defendants failed to show up,'' it said in a statement. The couple has flown to London, the Bangkok Post reported earlier today.
``Investors have been shuffling uncomfortably as political dramas play out,'' Vishnu Varathan, an economist at Forecast Singapore Pte., wrote in an e-mailed report. ``Against a backdrop of a stronger greenback and on the grounds that central bank intervention to cap baht weakness is not sustainable, we see the dollar heading higher.''
Ten-year government bonds advanced. The yield on the 5.125 percent note due March 2018 fell 5 basis points to 4.9 percent, according to the Thai Bond Market Association. The price rose 0.40337, or 4 baht per 1,000 baht face amount, to 101.6789.
Deputy Finance Minister Suchart Thadathamrongvej last week said the nation ``shouldn't raise the interest rate,'' because it will ``lower growth.'' The Southeast Asian's major ``problem is political instability,'' he said.
The $206 billion economy may expand between 4.8 percent and 5.8 percent in 2008, the central bank predicted on July 28, short of the Finance Ministry's target for 6 percent expansion.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 11, 2008 05:35 EDT
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JimboPSM
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That should be one of the the first lessons in exchange rate 101 classes.git wrote:.............. ``Against a backdrop of a stronger greenback and on the grounds that central bank intervention to cap baht weakness is not sustainable, we see the dollar heading higher.''
NB - further information should easily be obtainable from the multitude of honours graduates from the class of '97
I was kind of thinking along the same lines, they may be doing it for a different reason this time, but I think the end effects won't change. The dollar starts to move they will be throwing thier money in the wind. Actually when you look at it, on a world perspective, the entire countries economy is not as large as the state of Caifornia, one of 50 states.
They may create a slight bump here, but in the end my guess is it will cost them dearly. The smart thing in my book is to either hold onto those dollars or use them to buy oil. Not throw them in the wind. If they hold them they will increase in thier value and they will get a good return for buyng them in the first place. Now that is actually what I though they would do when they were buying them and I thought a smart move, a good five year investment.
TT, Interesting here we sit with the goverment trying to sell dollars, to control the currencies and exporters buying them trying to get an edge. This place will never get on the same page
They may create a slight bump here, but in the end my guess is it will cost them dearly. The smart thing in my book is to either hold onto those dollars or use them to buy oil. Not throw them in the wind. If they hold them they will increase in thier value and they will get a good return for buyng them in the first place. Now that is actually what I though they would do when they were buying them and I thought a smart move, a good five year investment.
TT, Interesting here we sit with the goverment trying to sell dollars, to control the currencies and exporters buying them trying to get an edge. This place will never get on the same page
Whats wrong with thi picturel ets see the site all the negatives to the baht and in the same article predict it's rice. Based on what?
Thai Baht to Drop on Economy, Politics, Standard Chartered Says
By Bob Chen
Aug. 12 (Bloomberg) -- Thailand's baht, trading at a 17- month low against the dollar, will weaken further as the economy deteriorates and political tensions lead to the dissolution of parliament, Standard Chartered Plc said.
Inflation accelerated to a decade-high in July, consumer confidence in June was the lowest this year and the central bank last month cut its 2008 economic growth forecast. The government yesterday issued an arrest warrant for former Prime Minister Thaksin Shinawatra after he skipped bail and fled to England instead of attending a court hearing for corruption charges.
``We are negative on the Thai baht for economic reasons, but the political backdrop also looks challenging,'' Standard Chartered analysts led by global head of currency strategy Callum Henderson said in a note to clients today.
Thailand's baht fell for a third day, sliding 0.3 percent to 33.86 per dollar at 4:45 p.m. in Hong Kong. The currency, this year's worst performer among Asia's 10 most-used currencies outside of Japan, earlier touched 33.88 per dollar, the weakest since Feb. 28, 2007. Thai markets are closed today for a holiday.
Thaksin said yesterday in a statement from London that his political enemies were trying ``to get rid of me'' and maintained his innocence. The ruling People's Power Party is ``widely believed to have close links with Thaksin,'' Standard Chartered said, and opposition politicians have vowed to continue protests calling for the government to be replaced.
``The market is likely to stay focused on the political developments,'' the research note said. ``The dissolution of parliament is only a matter of time.''
Gains Forecast
Standard Chartered did not give a forecast for the Thai currency, which has dropped 1 percent this month against the dollar. The baht will strengthen to 33.5 per dollar by the end of this year and 32.5 in 2009, according to the median forecasts of 20 analysts surveyed by Bloomberg News.
Thailand's economy may expand between 4.8 percent and 5.8 percent in 2008, the central bank predicted on July 28, citing the effects of higher prices squeezing disposable incomes. The bank previously forecast gross domestic product would grow as much as 6 percent this year.
To contact the reporter on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net.
Last Updated: August 12, 2008 05:02 EDT
Thai Baht Set for Weekly Drop as Slower Growth May Damp Demand
By Shanthy Nambiar
Aug. 15 (Bloomberg) -- Thailand's baht was poised for its fourth weekly decline on speculation slowing economic growth will curb demand for the nation's assets.
The baht extended this month's loss to 0.7 percent after a finance ministry official yesterday said growth in the Southeast Asian economy may weaken further in the second half of the year. Global funds have cut their stock holdings on concerns political turmoil will delay policies to boost growth.
``The currency will be affected by the stock market'' outflows, said Carol Chan, a currency analyst in Hong Kong at CFC Seymour Ltd. ``Politics is sapping investor confidence. In the near term we could see a little bit of depreciation in the baht.''
The Thai currency fell 0.2 percent to 33.78 per dollar as of 10 a.m. in Bangkok, according to data compiled by Bloomberg. It has declined 0.2 percent this week. The currency may trade between 33.60 and 33.90 next week, Chan said.
Overseas fund managers sold $191 million more Thai stocks than they bought this week, according to data compiled by Bloomberg.
Thailand's economic growth slowed to 5.7 percent in the second quarter and that may give the central bank the opportunity to lower interest rates, Finance Ministry spokesman Somchai Sujjapongse said yesterday. The economy expanded 6 percent in the first quarter.
The nation's Supreme Court issued arrest warrants for former Prime Minister Thaksin Shinawatra and his wife after the couple fled to London and failed to appear this week before a court on corruption charges.
There have been anti-Thaksin street protests since May, with protesters claiming current Prime Minister Samak Sundaravej is his proxy.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 14, 2008 23
Thailand Baht Falls to 10-Month Low on Rate, Inflation Worries
By Shanthy Nambiar
Aug. 20 (Bloomberg) -- The Thai baht fell to the lowest since October on speculation the central bank won't do enough to tame inflation and stem sales of local assets by overseas investors. Ten-year government bonds declined.
The baht has lost 6.3 percent in the past three months, the second-biggest drop among the 10 most-traded currencies in Asia outside Japan, as global funds sold stocks amid a political rift. Bank of Thailand Governor Tarisa Watanagase said last week further interest rate increases may not be needed to temper inflation, which accelerated to a decade-high 9.2 percent in July.
``The central bank hasn't really shown any great incentive to protect the baht,'' said Craig Chan, a currency strategist at Lehman Brothers Holdings Inc. in Singapore. ``Inflation will probably head into double digits pretty soon. There is the risk this one country in Asia is lagging behind the curve on the rate policy front.''
The baht fell 0.2 percent to 34.15 per dollar as of 4:30 p.m. in Bangkok, according to data compiled by Bloomberg. That's the weakest since Oct. 26. The currency may fall to 34.50 over the next month, Chan said.
Policy makers, who increased the one-day bond repurchase rate to 3.5 percent last month, will meet Aug. 27 to decide whether to maintain borrowing costs. The central bank's senior director Pongpen Ruengvirayudh yesterday said the bank will support the baht, without confirming whether it bought the currency.
Stock Sales
Overseas investors sold $2.9 billion more Thai stocks than they bought this year, according to data as of Aug. 19 compiled by Bloomberg. The SET Index of stocks has slumped 19.8 percent since the end of 2007.
``The money is flowing out steadily, but the amount is not that great,'' the central bank's Pongpen said.
The yield on the 5.125 percent bond due March 2018 advanced 7.4 basis points to 4.714 percent, according to the Thai Bond Market Association. The price fell 0.57981, or 5.79 baht per 1,000 baht face amount, to 103.1076. A basis point is 0.01 percentage point.
The Election Commission will next month decide whether to pursue a formal request through the Constitutional Court to disband Prime Minister Samak Sundaravej's People Power Party. The Supreme Court last month convicted Yongyuth Tiyapairath, a senior member of Samak's party, of buying votes in the December national elections.
``There is the negative political story as well,'' Chan said. ``Politics, central bank credibility, equity outflows'' are pushing the currency lower, he said.
To contact the reporter for this story: Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.
Last Updated: August 20, 2008 06:14 EDT
Ok the dollar dropped today the baht went up and so did oil, anyone see either country as a economic winner in this cause I sure don't
Asian Currencies: Thailand's Baht Advances, Won Falls on Stocks
By Lilian Karunungan and Shanthy Nambiar
Aug. 21 (Bloomberg) -- Thailand's baht advanced by the most in three months on speculation the central bank will support the currency as overseas investors sell the nation's assets. The South Korean won fell as global funds dumped local stocks.
The baht snapped a five-day decline after central bank Governor Tarisa Watanagase said today that the Bank of Thailand will support the weakening baht if moves in the currency are deemed ``excessive.'' Global funds sold $255 million more Thai stocks than they bought this month, according to data compiled by Bloomberg.
``The central bank is trying to support the baht,'' said Apichart Suratanasurang, a foreign-exchange trader at BankThai Pcl in Bangkok. ``We are not seeing any real inflows. There is still buying of dollars.''
The baht rose as much as 0.7 percent to 33.90 per dollar before trading at 33.94 as of 3:33 p.m. in Bangkok, Bloomberg data show. The won slid 0.5 percent to 1,054.90 in Seoul, according to Seoul Money Brokerage Services Ltd.
``We will act only when it is volatile,'' Tarisa told reporters today in Bangkok. She didn't confirm whether the Bank of Thailand bought the currency today. Central banks intervene in currency markets by arranging sales or purchase of foreign exchange.
The baht has dropped 6 percent in the past three months, making it the worst performer among the 10 most-traded currencies in Asia outside Japan, as accelerating inflation and rising political risk prompt investors to sell the nation's assets.
Disbanding Party
The Election Commission is seeking the dissolution of Prime Minister Samak Sundaravej's People Power Party. The Commission will approach the Constitutional Court on Sept. 2 to disband the party on charges of vote buying. Inflation quickened to a decade high of 9.2 percent in July.
The won was the biggest loser today among the 10 most- active regional currencies as stock exchange data showed foreign fund managers sold more Korean shares than they bought for a third day. Losses may be limited after the Bank of Korea yesterday bought the won to stem its decline and curb inflation at a decade high, said Ko Yun Jin, a currency dealer with Kookmin Bank in Seoul.
``Hefty foreign sales of local stocks in the past couple of days will curb any gains in the won,'' Ko said. ``The dollar's upside is capped by intervention fears.''
The won fell 11 percent this year, the worst performance after the Thai baht among the Asian currencies.
Monitoring Moves
Vice Finance Minister Kim Dong Soo said yesterday the government is monitoring volatile currency moves.
The benchmark Kospi stock index dropped 1.8 percent to the lowest close in a month. Overseas investors sold a net 919 billion won ($872 million) of local shares since Aug. 18.
India's rupee rose, snapping seven days of losses, on speculation exporters converted overseas earnings after the currency's fall to the lowest in 17 months.
The rupee ended its worst run since November as crude oil's slump from a record eased concern that import costs will increase and inflation will accelerate in Asia's third-biggest economy. Earnings rise in local currency terms for companies such as Tata Consultancy Services Ltd., the country's biggest software exporter, when the rupee weakens.
``Exporters are capitalizing on a long-waited opportunity,'' said Paresh Nayar, head of foreign-exchange and debt trading at Development Credit Bank Ltd. in Mumbai. ``The recent fall in the rupee was quick and included an element of speculation. So it will correct accordingly now.''
The rupee gained 0.4 percent to 43.515 in Mumbai, Bloomberg data show.
Elsewhere, the Malaysian ringgit dropped 0.3 percent to 3.3410 against the U.S. dollar. The Philippine peso climbed 0.4 percent to 45.460, according to Tullett Prebon Plc. The Singapore dollar rose 0.2 percent to S$1.4118, while Taiwan's dollar was unchanged at NT$31.389. Vietnam's dong gained 0.2 percent to 16,595 per dollar.
To contact the reporters on this story: Lilian Karunungan in Singapore at at lkarunungan@bloomberg.net; Shanthy Nambiar in Bangkok at snambiar1@bloomberg.net.