SINGAPORE: Most emerging Asian currencies rose on Tuesday, enjoying capital inflows on sustained expectations that the US Federal Reserve will take its time before tapering its monetary stimulus and as China's reform plans bolstered risk appetite.
The Indian rupee strengthened past 62.00 per dollar, the first time since Nov. 6.
The Indonesian rupiah advanced as foreign banks bought the currency ahead of the government's bond auction.
The South Korean won rose on demand from offshore funds, hitting its strongest against the dollar since Oct. 24 when it touched this year's high.
The Taiwan dollar advanced on foreign financial inflows.
Investors were awaiting Fed Chairman Ben Bernanke's speech on "Communication and Monetary Policy" later in the day and minutes of the US central bank's Oct. 29-30 meeting on Wednesday.
"The risks are that Asian FX rises more in the near term, but the US FOMC minutes will be important, as will US retail sales data," said Jonathan Cavenagh, senior FX strategist with Westpac in Singapore, referring to the Federal Open Market Committee.
"These two events could push US yields higher, which will work against Asian FX. But until then risks are we see a grind higher across the board. I see risks that Southeast Asian currencies play further catch up to Northeast Asia."
October retail sales data is set to be released on Wednesday.
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