Asian currencies weaken on slowing China growth

Asian currencies weakened following reports over the weekend of China's economy slowing last month, cutting the demand outlook for the region's exports.

The Bloomberg-JPMorgan Asia Dollar Index (ADXY) ended a three-day advance after China said on 10 March that its trade deficit in February was the highest in last 22 years. Overseas sales from Asia's largest economy were up 18.4 per cent, lower than the 31 per cent median estimate of economists surveyed by Bloomberg.

Demand for the dollar rose, following the US Labor Department statement on 9 March that non-farm payrolls were up 227,000 last month, after a revised 284,000 jump in the previous month. (Also see: US jobs report better than expected).

According to some analysts, weaker data in Asia led by China had been seen earlier and it was weighing on the currency markets.

Malaysia's ringgit slipped 0.5 per cent to 3.0245 per dollar in morning trade in Kuala Lumpur, according to Bloomberg data while South Korea's won was down 0.4 per cent to 1,122.05, and Indonesia's rupiah was down 0.4 per cent to 9,156. China's yuan was down 0.22 percent to 6.3244.

The MSCI Asia-Pacific Index of stocks ended a two-day gain and China said on 10 March, its trade shortfall in February was $31.4 billion.