SINGAPORE: The South Korean won hit a near two-month closing low against the US dollar and the Taiwan dollar touched its lowest in over six weeks on Thursday, after a spike in oil prices triggered broad selling of emerging Asian currencies by foreign funds.

Asian currencies broadly suffered as investors unwound short yen positions, with the won hitting a two-month low against the yen and the Taiwan dollar dropping to the lowest against the Japanese currency since Dec. 7.

Brent crude futures jumped over 7.5 percent to its highest since August 2008, rising as high as $119.79 a barrel, driven by fears that political instability in North Africa and the Middle East could tighten supply.

Many emerging Asian currencies are vulnerable to high oil prices, which accelerate inflation, analysts and dealers said.

Foreign exchange authorities in the region may allow appreciation of their currencies or even intervene to stop their falls as a way to ease growing price pressures, they added.

Earlier, Taiwan's central bank was spotted selling US dollar to check slides in the Taiwan dollar, dealers said.

"A rate hike is the best solution to stem inflation, but that may be a burden on Asian central banks as higher rates may have side effects such as more bankruptcies," said Young Sun Kwon, a Nomura International economist in Hong Kong.

"So, they may temporarily manage speed of depreciations in their currencies," said Kwon. But he added that the strategy of artificially keeping Asian countries strong may not work in the long term.

WON

Dollar/won rose above the 1,102-1,130 range held so far this year as offshore funds including hedge funds and macro real money funds kept dumping it and absorbing exporters' offers.

Dollar/won ends domestic trade at 1,131.2, up 0.6 percent from its previous domestic close of 1,124.0 and highest domestic end since Dec. 30 last year.

Earlier exporter offers for end-month settlements had kept the pair from breaking through 1,130, but now with the pair breaking the range, it is seen heading to a resistance of 1,155.

"We'd better prepare for a further rise, given external conditions, despite continuous exporter deals," said a foreign bank dealer in Seoul.

Yen/won also rose to as high as 13.8289, the highest since Jan. 3 as foreign funds bought the cross-currency pair on worries about impact of higher oil prices on the won.

"Offshore players bought the yen/won on dips as the yen is safe heaven while the won is vulnerable to oil," said a local bank dealer in Seoul.

PHILIPPINE PESO

Dollar/peso rose on risk aversion flows and local banks' demand amid worries about the impact on the Philippine economy from higher oil prices.

"Oil is really starting to become even more of a problem," said a Manila-based dealer.

Investors are watching if the pair will break through 43.85, which has been a pivot for quite some time.

Even if it rises above the level, it will find resistance at 43.90, its high on Feb. 14 and 44.00, the 50.0 percent Fibonacci retracement of its January-February decline.

TAIWAN DOLLAR

Taiwan's central bank was spotted selling US dollar to check dollar/Taiwan dollar  as the pair gained for a third consecutive session, rising as high as 29.796, the highest since Jan. 11, dealers said.

The central bank has sold the greenback whenever it reached a high level, dealers said.