Asian markets plunge to new lows

Asian currencies fell in late trade on Monday on fears of a contagion effect after Seoul abandoned its defence of the won, sending the currency crashing to a low of 1,008.6 to the dollar.

The fall triggered intervention by a couple of central banks.

Shortly after the midday break on Monday, South Korea's central bank shocked forex dealers by announcing it would no longer defend the 986 won level.

Dealers said the move was probably due to mounting concerns over the peninsula's dwindling foreign exchange reserves.

The news sent the won reeling to an all-time low and daily limit of 1,008.6 to the dollar.

The Singapore dollar sank to a low of 1.5825 on the news after hovering around 1.5765 in the morning on Singapore's robust 10.1% gross domestic product (GDP) growth in the third quarter.

The Taiwanese dollar plunged to a 10-year low to the dollar. It was quoted 31.366/500 at 1030 GMT.

The plunge led Taiwan's central bank governor Liang Cheng-chin to say it would intervene if the currency over-depreciated. He said there was no intervention on Monday.

The Indonesian rupiah was not spared the won's crash.

It broke the 3,500 level to a low of 3,505 before going back to 3,490/500 compared to an open at 3,440/60.

Dealers said the rupiah was also hit by concerns over potential concerted intervention by various central banks.