FOREX-Signs of Slowdown Deepening lower Asian Currencies, U.S. Senate Vote Set for Today on $838 Billion Stimulus Package

The U.S. Senate is set to vote today on an $838 billion economic stimulus package after Democrats narrowly won a key procedural vote on it. Investor sentiment is caught between the signs of a deepening global recession and optimism over the Fed’s proactive rescue measures. President Obama will hold a press conference later today while the details of the bank rescue plans are expected. The delay of the announcement from Monday to Tuesday undermined confidence in Asian and European markets on Monday.

Asian currencies fell, led by South Korea’s won, on concern the slump in the region’s economies is deepening, discouraging investors from buying local assets. India’s rupee dropped 0.2 percent 48.685 a US dollar. Korea’s currency weakened 0.5 percent to 1,386.35 against the dollar. The Indonesian rupiah dropped 0.3 percent to 11,805 and the Thai baht declined 0.1 percent to trade near a three- week low of 35.02.

The euro fell against the dollar and the yen as a Nikkei newspaper report that Russian banks and businesses may seek to reschedule $400 billion of foreign loans deepened concern financial turmoil in Europe is worsening. The euro declined 1.4 percent to $1.2823 in Tokyo, from $1.30003 late in New York yesterday, ending a two-day advance. The yen rose for a second day to 91.36 per dollar from 91.46 yesterday.