ID :
209045
Fri, 09/23/2011 - 13:10
Auther :
Shortlink :
https://oananews.org//node/209045
The shortlink copeid
European liquidity concerns cause steep declines in Asian currencies: expert
By Kim Young-gyo
HONG KONG (Yonhap) - Growing concerns over liquidity in Europe has caused steep declines in Asian currencies, an expert said Friday.
Many Asian currencies, including the Korean won, the Singapore dollar and Indian rupee, became excessively weaker against the U.S. dollar this week.
"This is not a case of the fundamentals having worsened for Asia. In our view, it comes down to the fear surrounding the Eurozone and position adjustment," said Paul Macke, head of Asian currency research at HSBC.
Macke said preference for the U.S. dollar has prevailed in the market, as investors saw the greenback as a safe haven while other developed economies face slowdowns.
"The fear now is that market participants continue to reduce risk across the board. We have already seen relatively large outflows from Asian equity markets this year," he said.
The Korean won, Singapore dollar and Indian rupee will likely stage rallies against the U.S dollar, if market conditions and fears over the European countries stabilize, the researcher predicted.
In order to bring stability to global markets, pressures among European banks to secure dollar funding should be eased, he said.
Meanwhile, market watchers said Friday investors feared that BNP Paribas and Societe Generale, France's two largest banks, might face problems in their liquidity and access to short-term funding.
HONG KONG (Yonhap) - Growing concerns over liquidity in Europe has caused steep declines in Asian currencies, an expert said Friday.
Many Asian currencies, including the Korean won, the Singapore dollar and Indian rupee, became excessively weaker against the U.S. dollar this week.
"This is not a case of the fundamentals having worsened for Asia. In our view, it comes down to the fear surrounding the Eurozone and position adjustment," said Paul Macke, head of Asian currency research at HSBC.
Macke said preference for the U.S. dollar has prevailed in the market, as investors saw the greenback as a safe haven while other developed economies face slowdowns.
"The fear now is that market participants continue to reduce risk across the board. We have already seen relatively large outflows from Asian equity markets this year," he said.
The Korean won, Singapore dollar and Indian rupee will likely stage rallies against the U.S dollar, if market conditions and fears over the European countries stabilize, the researcher predicted.
In order to bring stability to global markets, pressures among European banks to secure dollar funding should be eased, he said.
Meanwhile, market watchers said Friday investors feared that BNP Paribas and Societe Generale, France's two largest banks, might face problems in their liquidity and access to short-term funding.
