The South Korean won and the Thai baht rose against the dollar on Tuesday as foreign investors kept looking for higher-yieldings assets in the countries with strong economic fundamentals. But the won and the baht could not break through resistance lines as the foreign exchange authorities were spotted buying dollars to cap their strength.
Regional foreign exchange authorities are expected to continue intervening to slow gains in Asian currencies, which are seen staying firm on appetite among foreign investors, analysts and dealers said.
The won hit its strongest in more than seven weeks against the dollar on continued demand from foreign investors for South Korean stocks and as a shipbuilder's overseas order caused investors to build up dollar-short positions. The local currency strengthened to as firm as 1,119.8, the strongest since November 12.
The baht rose up to 1.1 percent to 29.80 per dollar, an over two-week high, on bids from both local and foreign banks, dealers said. The Taiwan dollar jumped to near the previous day's high. The Taiwan dollar rose to as high as T$29.087 per dollar earlier, compared with its previous close of T$30.200 on Monday.
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