Withering greenback

The US dollar, hit by weak US economic data, sank to a record low yesterday (Feb. 27) against the euro and southeast Asian currencies as major commodities and Asian stocks climbed on the back of its weaknesses to move further ahead. The dollar index fell at a record low of 74.509 level.

The euro rose as high as US$1.5050, its highest since the single currency's introduction in 1999. Southeast asian currencies like Singapore dollar, Malaysian ringgit and the Thai baht hit new decade highs, while the Philippine peso, despite some political noise, breached immediate support level of Php40.400 per dollar to close at Php40.330 level.

In the commodities market, gold price surged to a historic peak at US$955.40 per ounce and crude oil came near its all-time mark above US$101 a barrel, reaching US$101.13, as investors searching for safe havens to hedge against inflation.

Asian stocks hit a six-week high mainly on corporate earnings optimism. The Morgan Stanley Capital International (MSCI) index of Asian stocks outside Japan went up 2.4%. Ditto with the Nikkei index of Japan, which rose to 1.5% to a six-week closing high.

Yesterday's weak-dollar scenario came about as a US stagfaltion fear is starting to creep in the global arena.