Most emerging Asian currencies gained on Wednesday as interbank speculators bet on progress to tackle Europe's debt woes at a summit on Friday although demand was limited by belief that problems would linger. European leaders will discuss boosting the firepower of the eurozone rescue fund at the summit, the Financial Times reported citing senior European officials.
Asian currencies "would have room to rise more" if the EU summit meets expectations and produces any positive surprises, said Saktiandi Supaat, head of FX Research at Maybank in Singapore. The South Korean currency on Wednesday outperformed its Asian peers. Dollar/won slid in thin trading as interbank speculators reduced dollar holdings.
The pair may fall more on exporters' supplies for settlements, but players were reluctant to sell it more before the European summit. Dollar/Philippine peso fell as some traders sold the pair amid hope for eurozone progress but trading was subdued, dealers said. Speculators sold dollar/ringgit in thin trading and the pair extended its slide with a higher euro. Dollar/baht fell on inflows to Thai stocks and bonds. Foreign investors were net buyers of Thai stocks in five consecutive sessions between November 29 and December 6, purchasing a combined net $262 million.
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