Asian currencies have declined this week with India’s rupee and South Korea’s won leading the pack due to the United States’ announcement that their figures show that the global economic recovery is slowing down and the Europe’s debt crisis is spreading in other areas, augmenting the demand for dollars.
The stocks in the Asia Pacific market have gone down in the fourth week in a row as investors rushed to get to more guaranteed investments instead of emerging market stocks The reports released by the United States on August 18 showed that the consumer confidence is very weak and was recorded at its lowest level since March 2009, home purchases have declined in the month of July and unemployment statistics have gone up. Taiwan has released a report of their second quarter gross domestic product figures on August 18 and has concluded that they are in the same league as China, South Korea, Hong Kong, Malaysia and Singapore in have a slow growth since 2009.
According to Roy Teo from ABN Amro Private Bank, “The risk of recession has increased and we do expect some further monetary stimulus from the U.S. It’s hard to predict the turning point as to when the European policies will calm the market and until they do so, the dollar will be supported and Asian currencies could come under more pressure.”
South Korean won was down by 0.6% to 1,086.90 from last week. Indian rupee was down by 0.9% to 45.7475 per dollar. China’s yuan remained at 6.3960. The Japanese yen was down by 0.1%.
Tags: Business Finance, lowest level, Japanese yen, guaranteed investments, asia pacific
