SINGAPORE: Most emerging Asian currencies rose on Wednesday with the South Korean won at a seven-week high as regional shares climbed to their highest in almost seven years on growing speculation of more stimulus by the European Central Bank.
The won, however, pared some of its earlier gains after hitting 1,013.7 per dollar, its strongest since July 10, as traders said the foreign exchange authorities were spotted intervening to stem its appreciation.
The suspected intervention came as the South Korean currency touched a six-year peak on the yen.
The Malaysian ringgit and the Philippine peso rose on demand from offshore funds. The ringgit extended gains as a break of 3.1500 per dollar triggered stop-loss dollar selling, traders said.
Indonesia's rupiah advanced after a deputy central bank governor said he expected the current account deficit in the third quarter to be narrower than the second quarter.
The Taiwan dollar joined the regional rally as foreign investors extended their buying spree in the local stock market to a ninth consecutive session.
Regional currencies received further support as the US dollar turned weaker against a basket of six-major units after hitting a 13-month high.
Asia-Pacific shares outside Japan advanced to their highest since January 2008 as a call by ECB President Mario Draghi for more action on both monetary and fiscal fronts boosted expectations for further easing.
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