Won leads Asia FX slides on low inflation data, rate cut view

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SINGAPORE (Nov 4): The South Korean won led the slide among emerging Asian currencies on Tuesday, falling to its weakest in seven months, with benign inflation data increasing expectations of a further interest rate cut.
    
The won came under further pressure as South Korea's finance minister expressed concerns over a weakening yen and said the government will continue market stabilising efforts after the Japanese central bank decided to expand its
massive stimulus last week.
    
The foreign exchange authorities were believed to have intervened to check the currency's strength against the yen, traders said. The won on Monday hit a six-year high of 9.4339 versus the Japanese unit.
    
Offshore funds sold the won against the dollar, absorbing exporters' supplies of the greenback for settlements, traders said.
    
Malaysia's ringgit slid to a near nine-month low as offshore funds unloaded the currency amid concerns lower oil prices might hurt its economic fundamentals. The country is a major exporter of palm oil.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0805 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen       113.61         114.04       +0.38
  Sing dlr        1.2886         1.2915       +0.23
  Taiwan dlr      30.529         30.488       -0.13
  Korean won     1076.54        1072.60       -0.37
  Baht             32.67          32.60       -0.20
  Peso             44.92          44.90       -0.03
  Rupiah        12108.00       12105.00       -0.02
 *Rupee            61.40          61.40        0.00
  Ringgit         3.3265         3.3175       -0.27
  Yuan            6.1167         6.1183       +0.03
 
  Change so far in 2014
  Currency    Latest bid  End prev year    Pct Move
  Japan yen       113.61         105.28       -7.34
  Sing dlr        1.2886         1.2632       -1.97
  Taiwan dlr      30.529         29.950       -1.90
  Korean won     1076.54        1055.40       -1.96
  Baht             32.67          32.86       +0.60
  Peso             44.92          44.40       -1.16
  Rupiah        12108.00       12160.00       +0.43
  Rupee            61.40          61.80       +0.65
  Ringgit         3.3265         3.2755       -1.53
  Yuan            6.1167         6.0539       -1.03
  * Financial markets in India were closed for a holiday.