Most Asian currencies firmed on Monday as easing tensions in Egypt bolstered investor appetite for risky assets, with market players focusing on trends in capital flows for near-term direction hints. Currencies such as the Indonesian rupiah, the Indian rupee and Singapore dollar edged higher against the dollar, while the Taiwan dollar bucked the broader trend and retreated.
Data compiled by fund-tracker EPFR Global showed that investors continued to shift their funds into developed market stocks while pulling money out of emerging market equities in the week ended February 9. The dollar fell against the Indonesian rupiah, hurt by selling by foreign players. However, there was talk of good bidding interest for the dollar from local banks, probably related to corporate demand for dollars.
The Taiwan dollar fell as foreign money continued to leave the island. Foreign investors sold a net T$21.6 billion of Taiwan shares on Friday, following on from Thursday's net selling of T$16.9 billion, which was the largest single-day net selling in eight months. One trader said foreign investors were heavily buying US dollars on Monday while exporters were not seen in the market.
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