Most Asian currencies rise
Tuesday, 13 November 2012
SINGAPORE, Nov 12 (Reuters): The Taiwan dollar hit a 14-month high on Monday, leading gains among emerging Asian currencies on inflows after more signs of economic stabilisation in the United States and China, Asia's major export markets, and on a record high for the yuan.
The Taiwan dollar rose 0.6 per cent even after the central bank called traders to ask them to hold long US dollar positions for the day, in addition to light intervention, dealers said.
The Singapore dollar also saw inflows, while the Malaysian ringgit rose, tracking the yuan which jumped on continuous demand from Chinese corporates after the central bank set an unusually strong daily mid-point.
But the South Korean won ended the local market weaker after the finance minister spoke of Seoul contemplating possible measures to manage inflows and the authorities were spotted intervening, dealers said.
Investors stayed wary of US fiscal problems and Greece's putative bailout, but emerging Asian currencies are expected to stay firm as improvements in the world's top two economies - the United States and China - are likely to bring more money to the region, dealers and analysts said.
"Asia FX will remain with strong upside in the medium term, although risk aversion and year-end caution will limit strength," said Maybank FX research head Saktiandi Supaat in Singapore, adding rating upgrade expectations and higher yields will support regional currencies.
"People will be cautious as there will be brinkmanship before the new US congress reaches a final compromise," Supaat said of the US fiscal cliff.
President Barack Obama on Friday invited congressional leaders to the White House, kicking off negotiations to avoid the fiscal cliff by finding a compromise to cut the US deficit before nearly $600 billion worth of spending cuts and tax increases take effect in early 2013.
Taiwan Dollar: The Taiwan dollar touched 28.959 to the greenback, its strongest since Sept. 1, 2011 on inflows from foreign financial institutions.
Won: The won eased after the finance minister said the government was looking more seriously into tightening regulatory measures on capital inflows to curb the won's rally.
Singapore Dollar: The Singapore dollar gained on inflows of foreign funds and leveraged accounts buying the city-state's currency.
Ringgit: The Malaysian ringgit edged higher on strong China's exports data and the yuan's surge, but the currency's upside was limited as local corporates bought dollars around 3.0600, dealers said.
The Taiwan dollar rose 0.6 per cent even after the central bank called traders to ask them to hold long US dollar positions for the day, in addition to light intervention, dealers said.
The Singapore dollar also saw inflows, while the Malaysian ringgit rose, tracking the yuan which jumped on continuous demand from Chinese corporates after the central bank set an unusually strong daily mid-point.
But the South Korean won ended the local market weaker after the finance minister spoke of Seoul contemplating possible measures to manage inflows and the authorities were spotted intervening, dealers said.
Investors stayed wary of US fiscal problems and Greece's putative bailout, but emerging Asian currencies are expected to stay firm as improvements in the world's top two economies - the United States and China - are likely to bring more money to the region, dealers and analysts said.
"Asia FX will remain with strong upside in the medium term, although risk aversion and year-end caution will limit strength," said Maybank FX research head Saktiandi Supaat in Singapore, adding rating upgrade expectations and higher yields will support regional currencies.
"People will be cautious as there will be brinkmanship before the new US congress reaches a final compromise," Supaat said of the US fiscal cliff.
President Barack Obama on Friday invited congressional leaders to the White House, kicking off negotiations to avoid the fiscal cliff by finding a compromise to cut the US deficit before nearly $600 billion worth of spending cuts and tax increases take effect in early 2013.
Taiwan Dollar: The Taiwan dollar touched 28.959 to the greenback, its strongest since Sept. 1, 2011 on inflows from foreign financial institutions.
Won: The won eased after the finance minister said the government was looking more seriously into tightening regulatory measures on capital inflows to curb the won's rally.
Singapore Dollar: The Singapore dollar gained on inflows of foreign funds and leveraged accounts buying the city-state's currency.
Ringgit: The Malaysian ringgit edged higher on strong China's exports data and the yuan's surge, but the currency's upside was limited as local corporates bought dollars around 3.0600, dealers said.