Currency Charts International

The swiftness with which devaluations have swept the Thai region suggested that underlying problems had been ignored in the charge into economic growth. At the Asian Development Bank in Manila, the chief economist perceives several broad problems that have eaten into the region's economies, problems that he says are correctable but that will inhibit any rapid return to world currency chart of recent years.

He lists them as follows:

*The steady appreciation of the United States dollar, to which many regional currencies have been linked. By making exports expensive abroad, this has undermined the competitiveness of these economies.

*A failure by many countries to invest in basic facilities and services, and in the development of banking systems and financial regulation. Such failures were compounded by a lag in investment in education, skills training and language competence, particularly in the use of English.

*A growing tendency of wages to begin outpacing productivity gains.

*In some countries, a splurging on major building and infrastructure projects without regard for their necessity or the way in which they would be financed.

“These elements have been accumulating for some time,” Mr. Desai said. “Some kind of cleansing I hope will take place now.” But the chief economist for Lehman Brothers in Hong Kong, cautioned against overstating the troubles confronting the region. Clearly there are cyclical problems. The questions about Southeast Asian economies concern labor forces that are less educated, infrastructure -- that's a bottomless pit -- and competitiveness. In Thailand, the currency devaluation is a symptom of major imbalances in the economy, it's not a tumor.

At the same time, Mr. Srinivasan of Morgan Stanley pointed to other economies whose growth will increasingly challenge South Asia's. The future lies with the big economies of Asia, China and India, where you don't have to rely exclusively on export markets for growth. Regional competition in Southeast Asia is going to pick up, he predicted.

Indeed, while the shock to Asian economies is still being assessed by governments, economists and traders, Mr. Desai said that in the end the region would benefit. “If we are talking about the next 12 months, certainly all this has not helped,” he said, adding, “But I think these economies should be growing again at a fair clip in the second half of 2007 and thereafter.”

In the international market, pound sterling opened on list of the month at 1.6475, the highest of the month and closed on the last day at 1.645 touching the lowest of the month of 1.6140 on the 12th. DM of Germany started with 1.7984 and ended with 1.7855 touching the highest of the month of 1.785 on 27th and lowest of the month of 1.8400 on the 20th of the month.

Japanese yen opened at 130.50 and closed at 125.57, the highest of the month. It touched the lowest of the month of 133.66 on the 6th. Swiss Franc commenced its journey with 1,4616 and ended with 1.4485, the highest of the month. It rallied to the lowest ebb of the month of 1.4998 on the 20th.