Asian currencies enjoyed gains on Wednesday with the South Korean won reaching a 2-1/2-year high against the dollar, fuelled by expectation of more steps to contain inflation in the region after Emerging Asian currencies are expected to sustain the bullish trend as regional central banks are still in a tightening mode amid stronger economic growth, which also attract inflows to regional shares, analysts and dealers said.
The won hit a fresh 2-1/2 year high against the dollar on demand from offshore funds such as macro funds and as foreign investors extended to 16 days a streak of sessions in which they have been net stock buyers in Seoul. The South Korean currency strengthened to as firm as 1,083.8 per dollar, the strongest since September 10, 2008 and to as strong as 12.6800 versus the yen, the firmest since May 20, 2010. The peso touched a five-month high against the dollar, helped by demand from momentum funds and break-out players.
The peso strengthened to as firm as 43.15, its strongest since early November last year. The Taiwan dollar, after market closures on Monday and Tuesday for local holidays, caught up with Asian peers, hitting a near two-month high against the US dollar. The rupiah strengthened to as firm as 8,645 per dollar, the strongest since May 2007. It is seen having a major resistance at 8,640, the dollar's low that month.
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