Singapore dollar, ringgit down

The Singapore dollar and the Malaysian ringgit fell on Monday as on profit-booking after finance ministers in Europe delayed a decision on a rescue package to Greece, suggesting emerging Asian currencies are still vulnerable to the euro debt crisis.
"There is still much scope for gnashing of teeth over Greece, so in the short term we would be concerned about further bouts of risk aversion," said Ashley Davies, senior EM Asia economist and FX strategist of Commerzbank in Singapore, suggesting emerging Asian currencies would stay weak. "A failure to pass this vote will either lead to elections or a coalition government, both of which will slow down the bailout process," said Kenneth Kan, head of emerging markets forex trading at Credit Agricole Corporate and Investment Bank in Singapore.
The Singapore dollar and the ringgit slid as interbank speculators covered dollar-short positions with euro zone finance minister failing to soothe worries about Greece debt crisis. The local currencies are likely to stay weaker, tracking a weaker euro, dealers said.
The won erased all of its earlier gains on importers' dollar demand and as local interbank speculators covered dollar-short positions. Foreign investors extended their selling spree in Seoul's stock market to a third consecutive session, putting further pressure in the South Korean currency. Earlier, the won gained as much as 0.5 percent to 1,080.6 per dollar.