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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Bonefish who wrote (88825)	10/20/2008 4:18:31 PM
From: Haim R. Branisteanu	Respond to of 116555

Dollar Hoarding Fuels Won, Rupee, Real Drop on Losses (Update4) (huge screw up - wait when it will turn) By Kim Kyoungwha and Wes Goodman Oct. 20 (Bloomberg) -- Exporters in emerging markets are hoarding dollars as losses on currency bets worsen the slump in the South Korean won, Brazilian real, Mexican peso and India's rupee. South Korean phone parts maker KJ Pretech Co. resisted converting dollars to won after record swings in currency markets ruined its trading strategies. In Brazil, Aracruz Celulose SA, a pulp producer, Sadia SA, a poultry company and Grupo Votorantim, a cement maker, had $2.3 billion in losses on hedges intended to protect earnings from exchange-rate moves. India's biggest carmaker, Maruti Suzuki India Ltd., plans to wait for a weaker rupee before bringing profits home from outside the country. Western Asset Management Co. and Union Investment, which manage more than $800 billion combined, are selling emerging- market currencies as the global economy slows and demand for dollars increases. Zurich-based UBS AG predicts the rupee will weaken 2.1 percent to a record low of 50 per dollar by March, adding to a 19 percent drop this year, while the won will depreciate 6 percent to 1,400, extending a 29 percent slump. ``This is all caught up in the broader trend for the global grab for dollars,'' said Edwin Gutierrez, a money manager who oversees $5.5 billion in debt in London at Aberdeen Asset Management, the Scottish fund company focused on emerging markets. ``Expect more weakness.'' bloomberg.com