Dec 27 2013

Asian currencies  raise in last week of the ending year 2013 

”The baht depreciated 0.8 percent from Dec. 20 to 32.873 per dollar in Bangkok, having touched 32.882, the weakest level since February 2010, according to data compiled by Bloomberg. Indonesia’s rupiah fell 0.4 percent to 12,263 before touching a five-year low of 12,281.The Fed announced Dec. 18 it will trim its monthly bond purchases to $75 billion from $85 billion starting next month. Initial jobless claims dropped more than forecast last week to 338,000, while consumer confidence climbed. 

 

The Thai baht led losses this week as the two-month-long political protests escalated, raising concerns about economic growth and tourism. Trading was muted due to closures in many markets for the Christmas holidays, according to Malayan Banking Bhd.“Most Asian currencies weakened because of the broad dollar strength,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking in Singapore. “The positive U.S. data also supports the case for further Fed tapering.

 

Most Asian currencies fell this week as signs of an improving U.S. economy bolstered demand for the dollar amid tapering from the Federal Reserve that’s spurring outflows from emerging markets.Global funds pulled $3.6 billion from South Korean, Thai, Philippine and Indonesian stocks so far in December as the Fed prepares to pare stimulus in January, exchange data show. 

 

Rate Range Projection by Bank

 

Next  week           102.50  -  105.00
Next 3 months      100.00  -  107.00