After Nasdaq slided down 6.5 percent on Wednesday night, Asian currencies battle it out as key stock indices of two major Asian cities – Seoul and Tokyo – dropped closely to 7 percent.
The said dropout prompted Asian currencies such as the South Korean won and the Indonesian rupiah to record low, according to traders. In addition to the currencies aforementioned, researchers of Standard Chartered Bank predicted that the Philippine peso will be left fragile due to its weak external trading.
Even so, a few Asian currencies escaped the tragic fate that the others are experiencing – remarkably mentioning the Hong Kong dollar and the Japanese yen.
The Hong Kong dollar is in a standstill position, only selling the currency against the greenback “no less than half-a-dozen times,” according to Hong Kong authorities.
Consequently, experts would say both the yen and the US dollar benefits at the expense of others. Stanchart researchers also advised that strong deflationary forces for these currencies would be the exact opposite for non-Japan and non-US currencies in Asia.
Due to the sudden drop of non-oil exports, rumor has it that the Monetary Authority of Singapore (MAS) can be convinced to implement a softer monetary policy.
In Asia, US tailed 1.5 percent behind the 95.42 Japanese yen but ascended to the 1,497.8 Korean won by 3.4 percent. However in other places, it closed almost unmoved at S$1.5287.
In Australia and New Zealand, the US dollar outwitted their currencies at 2.8 and 1.7 percent respectively – closing at 0.63 dollars and 0.54 dollars.