SINGAPORE -- The Malaysian ringgit hit its lowest in 2008 and the Singapore dollar fell to a five-month low Monday as mounting global growth concerns weighed on the currencies of Asia's most trade-dependent economies.
But the broad strength in the US dollar hurt all of Asia in spite of the fall in the price of oil which is one of the region's biggest imports.
The dollar struck a six-month high against a basket of currencies as fund managers and investors unwound holdings of commodities and high-yielding currencies.
Growth concerns were pushed to the fore by last week's remarks from the European Central Bank acknowledging that euro zone economies were slowing more than expected, and by suggestions the Australian authorities could be cutting rates.
The rupiah tumbled half a percent Monday while the Philippine peso hit P44.485 per dollar in morning trade, its lowest in more than two weeks.
The ringgit hit 3.3180 per dollar, its weakest this year, and the Singapore dollar fell to the weaker side of 1.41 per US dollar after the government lowered its growth forecast for the economy.
"The dollar buying seems a bit overdone, but the dollar is still rallying against the majors," said a trader in Kuala Lumpur.
Jonathan Ravelas, chief market strategist at Banco De Oro Universal Bank in the Philippines, said the peso had also reacted to the dollar's broad strength.
"We are looking for a rally towards P44.50-P45.00 levels in the near-term, following a near-term bottom at last week's low at P43.76," Ravelas said.
Analysts at JPMorgan Chase said market positions were exacerbating the Asian currency selling, owing to stop losses being triggered on long positions in the regionals.
"The low yielding currencies from open economies most leveraged to global growth are taking the brunt of the impact, while less cyclical FX that also benefit from the oil price decline are being impacted the least," they said in a note to clients.
"With positions still relatively flat and growth concerns rising, near-term momentum remain for these moves," they said.
