Ringgit touches a 10-year low

ASIAN CURRENCIES ROUND-UP

Asian currencies fell as a slide in the region's stock markets prompted investors to reduce holdings of emerging-market assets.

Malaysia's ringgit weakened from the strongest in a decade on concern subprime losses at U.S. banks will keep widening. All 10 of the most-traded currencies in Asia outside Japan slipped as the Morgan Stanley Asia-Pacific Index, a benchmark for region's shares, slumped the most since August 17.

"Risk aversion continues and stocks are going to fall again,'' said Awaluddin Shariff, a currency trader at EON Bank Bhd. in Kuala Lumpur. ``People will want buy the dollars to cover their short positions." short position is a bet an asset will decline.

The ringgit weakened 0.7 per ent to 3.3393 against the dollar as of 4:41 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency reached 3.3177 on November 9, the strongest since November 1997.

The Indonesian rupiah also fell on speculation overseas investors will add to sales of local assets. Global funds sold more of the nation's equities that they bought for four of past five trading days, according to stock exchange data.

"Many market players are still cautious about the state of the U.S. subprime market,'' said Masahiro Gao, vice president of the treasury unit of PT Bank Mizuho Indonesia in Jakarta. "Some people will buy the dollar for risk reduction.''

The rupiah fell 0.4 per cent 9,173 per dollar in Jakarta, according to data compiled by Bloomberg. The currency may decline as far as 9,190 today, Gao said.

The South Korean won fell the most in three months against the U.S. dollar. The currency has lost 1.2 per cent this month as Morgan Stanley said it lost $3.7 billion on subprime mortgage- related assets and Citigroup Inc.'s Chief Executive Charles O. Prince resigned.