(MENAFN- Khaleej Times) Indonesia's rupiah led losses in the region with its biggest annual decline since 2000, India's rupee weakened for a third year and Thailand's baht fell to the lowest level since 2010 amid concerns about current-account balances and increased political risk before elections due in 2014. China's yuan rose to a 20-year high on optimism the government is stepping up efforts to boost the currency's convertibility and South Korea's won advanced for a second year.
The Bloomberg-JPMorgan Asia Dollar Index declined 1.8 per cent to 116.11 this year as of 4:46pm in Singapore, the most since a 5.9 per cent slump in 2008. The gauge of 10 regional currencies excluding the Japanese yen climbed 2.6 per cent in 2012. The Bloomberg US Dollar Index advanced 3.4 per cent in 2013, the most in five years.
"We see Asian currencies weakening modestly against the dollar next year as the US fundamentals continue to improve and data there could surprise on the upside" in support of tapering, said Irene Cheung, a currency strategist in Singapore at Australia & New Zealand Banking Group Ltd. "There's no clarity yet" as Indonesia, Thailand and India hold elections next year, she said.
The rupiah lost 21 per cent to 12,170 per dollar, the rupee dropped 11 per cent to 61.825 and the baht depreciated 6.8 per cent to 32.82.
Malaysia's ringgit tumbled 6.7 per cent to 3.2795, the most since the 1997 Asian crisis. The Philippine peso fell 7.5 per cent, its worst drop since 2008, to 44.38.
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