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Asian currencies
Baht weaker ahead of protests by Thaksin supporters
SINGAPORE: The Malaysian ringgit fell on Tuesday as investors took profits from its recent rally, while the Chinese yuan eased in offshore markets in line with movements in the euro and regional stocks. Investors generally expect Beijing to allow the yuan to strengthen later this year, which would provide a further catalyst for other Asian currencies.
Meanwhile, the euro came under pressure against the yen and dollar after Greek Prime Minister George Papandreou warned on Monday that if the Greek crisis worsened it could lead to a new global financial meltdown.
The ringgit fell as much as 0.4 per cent to 3.3455 per dollar, off its highest in nearly seven weeks hit on Monday as investors took profits from its recent rally.
But the profit-taking appeared to be half-hearted as investors remain bullish on the ringgit after the central bank's interest rate rise last week and expectations of a stronger yuan. One-month dollar/ringgit NDFs briefly rose to 3.349 from 3.337 late on Monday but later pulled back to 3.343.
The Thai baht shed a third of a per cent to 32.80 per dollar as investors turned cautious ahead of planned mass protests at the weekend by supporters of ousted Prime Minister Thaksin Shinawatra. -Reuters
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