For two days and continue to decline of Asian currencies in the region, losing ground South Korean won and Philippine peso. Analysts attributed the fall of course that the technical tools used by traders for making predictions of currency movements, signaled a possible increase in the dollar.This week, the won rose to a 32-month high, which analysts attributed to the account record in exports recorded in the country in April. Meanwhile, May 2, the peso reached its highest level for the last 6 months, which, in turn, was caused by rumors of a possible increase in interest rates.
Relative Strength Index won, Taiwan dollar and Malaysian ringgit this week sank below 30, indicating that the recent rise in rates was excessive.
"Market participants are aggressively building up long positions in Asian currencies. It seems that this week will be observed in the consolidation process - says the head of research at the emerging economies at Societe Generale in Hong Kong. - In my opinion, in fact, it is a healthy correction" - the expert believes .
Index Bloomberg JP-Morgan Asia Dollar Index retreats for two days.
Tomorrow, May 5, will be decided on the size of the interest rates the central banks of Malaysia and the Philippines. According to the forecasts of most economists, the Bank Negara will keep interest rate unchanged at 2.75%. Some experts say the possibility of raising rates by 1%. With regard to the Philippines, here most of the economists expect a rate hike by 25 basis points to 4.50%.
