Asian currencies reach new high

The Philippine Peso rose to a seven-year high peak as the dollar came under broad downward pressure. The dollar hit record lows against the euro and its trade-weighted currency index as investors remained concerned about the US economy slipping into recession. But the Asian markets have for at least now, overcome their anxiety over weekend revelations of losses of Citigroup. The peso rose 0.9% to 43.275 per dollar recording its peak since July 2000.
Traders started to dump dollars after a senior Chinese official said that China should balance the makeup of its $1.43 trillion of foreign currency reserves so that strong currencies such as euro offset weakening currencies such as dollar. The effect cascaded around all markets and all Asian currencies gained. Singapore dollar hit a 10-year high at 1.4430. The Indonesian rupiah rose to 9095 per dollar and South Korean to 904 per dollar. Meanwhile, oil soared above $98 per barrel for the first time.