Asian currencies down

The Philippine peso slipped in spot and offshore forwards markets on Wednesday as investors bought US dollars amid concerns about debt problems in Greece and Dubai, while the rupiah's decline sparked official intervention. The euro fell to a one-month low against the dollar as investors unwound positions in riskier assets ahead of the year-end, with Greece's downgrade on Tuesday and the recent Dubai shock undermining sentiment.
PESO The peso slipped to 46.35 per dollar, down 1 percent from its 15-month high hit on Tuesday. "Lingering concerns about Dubai World and the newest one involving Greece's downgrade are unsettling markets. Compound those with weakness in commodities and equities and you have a somewhat perfect brew for risk aversion," said a dealer in Manila.
Three-month onshore dollar/peso forwards rose to 46.73 from 46.61 at Tuesday's close, while offshore NDFs with the same tenor rise to 46.59 from 46.41. The spread between the onshore forwards and NDFs widened to 140 points from 20 points at Tuesday's close, which traders say could encourage cross-border arbitrage activity.
RUPIAH The high-yielding rupiah fell 0.6 percent to 9,495 to the dollar due to concerns about debt problems in Greece and Dubai, but it later stabilised and traders cited central bank intervention. Indonesia's central bank sold dollars in a bid to set a floor near the 9,500 per dollar level, traders said.
The rupiah is up 16 percent against the dollar this year, making it the best-performing currency in Asia. Indonesian officials have predicted it will strengthen further next year.
BAHT Thai baht eased to 33.20 per dollar, tracking its Asian peers in sluggish trade with dealers expecting it to be trapped in a narrow 33.18-24 intra-day range. The baht has gained 4.8 percent against the dollar this year despite frequent official interventions to check its strength.
SINGAPORE DOLLAR The Singapore dollar was shackled between 1.3933-1.3947 per US dollar, reacting little to a central bank survey on the currency published on Wednesday. The survey predicted that the currency will strengthen to 1.350 against the US dollar by the end of next year, compared with a forecast 1.382 by the end of 2009.
Singapore's economy is forecast to grow 5.5 percent next year, versus expectations of a 2.0 percent contraction this year, as the trade-dependent city-state rebounds from its worst recession, the survey of 20 private economists showed.