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SINGAPORE - Asian currencies lost further ground against the dollar on Friday, led by a 4 percent slide in the South Korean won, as investors continued to dump regional stocks amid fears of a sharp global economic downturn.
The won fell as low as 1,464.9 per dollar, down almost 4 percent from Thursday's domestic close and nearing a
10-and-a-half-year low hit earlier in the month.
The Thai baht gapped down at opening and fell as far as 34.73 per dollar, about 0.7 percent lower than Wednesday's close. Thai markets were closed on Thursday for a holiday.
"I see the dollar up against the baht, and it will test 34.75-34.80 soon," said a trader in Bangkok. Bank of Thailand Governor Tarisa Watanagase said on Friday that interest rates could be cut if the Thai economy slowed
faster than expected.
The Indonesian rupiah fell towards the 10,000-per-dollar level.
"I think it will be quiet today," said a trader in Jakarta.
"I believe near 10,000 are good levels to try to go short the dollar."
The MSCI index of Asia-Pacific equities traded outside of Japan fell 5.6 percent to a 4-year low and was on track for its eighth weekly loss.
But the Chinese yuan only eased a tad to 6.842 per dollar, still moving in tight ranges that started since mid-July, when its appreciation against the dollar came to a halt.
Analysts expect Chinese authorities to keep on the yuan virtually stable in the near term, because letting the unit
rise would hurt the already slowing economy while pushing it down too much would stoke criticism from the United States.
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