Asian currencies declined, erasing earlier gains, as concern over Greece’s debt crisis

Concern over Greece' debt crisis


The MSCI Asia-Pacific Index of shares fell after an emergency session of European finance ministers failed to agree to a German-led push for bondholders to shoulder part of the cost of a new Greek aid package in Brussels late yesterday. The European Central Bank, backed by France, warned the move might constitute the euro area’s first sovereign default. Currencies climbed earlier after data showed Chinese factory output rose and U.S. retail sales were better than economists had expected.

Indonesia’s rupiah weakened 0.1 percent to 8,546 per dollar as of 3:35 p.m. in Jakarta, according to data compiled by Bloomberg. Thailand’s baht, the Philippine peso and Malaysia’s ringgit declined 0.1 percent to 30.48, 43.39 and 3.0325, respectively.

Global funds sold $2 billion more South Korean, Taiwanese and Thai shares than they bought this month through yesterday, exchange data show.

Thai Political Risk
The baht traded near a three-month low as concern elections slated for July 3 will spark unrest prompted overseas investors to pull funds from the nation’s assets. Latest polls show Prime Minister Abhisit Vejjajiva’s Democrat party is trailing the Pheu Thai party, led by Yingluck Shinawatra, the sister of ex-leader Thaksin Shinawatra.

South Korea’s won rose by as much as 0.2 percent earlier after China reported industrial production rose 13.3 percent last month, compared with the 13.1 percent median estimate in a Bloomberg survey. South Korea’s jobless rate dropped to a six- month low of 3.3 percent in May, a report today showed. The won was little changed at 1,083 per dollar. (Source:bloomberg)