Asia seen at turning point in currency rally

Singapore

THE rally in Asian currencies from January's seven-year low hasn't convinced strategists that this newfound strength can last. Every currency in the region will weaken by year end, with those of Singapore, Taiwan and South Korea all predicted to drop at least 3 per cent, surveys compiled by Bloomberg show.

The cost of hedging against losses has climbed for seven straight days, the longest streak in a year. China's economic slowdown and the Federal Reserve's bias to consider raising US interest rates will hasten declines, according to Standard Life Investments Ltd and Societe Generale SA.