SEOUL: The Thai baht hit a three-month high on Tuesday, while most emerging Asian currencies fell on a weaker Chinese yuan and caution over what the US Federal Reserve may do at a policy meeting.
The baht rose as much as 0.4 percent to 32.10 per dollar, its strongest since Dec. 18, as Thailand's government said it would lift a state of emergency because anti-government protests have become less active.
Bangkok shares also touched their highest level in more than three months.
Most emerging Asian currencies, however, failed to maintain earlier gains as the yuan slipped after the central bank fixed the currency's midpoint weaker.
The Indonesian rupiah and the South Korean won fell on dollar demand from local importers.
The Fed, which starts a two-day meeting later on Tuesday, is expected to cut its monthly asset purchases by another $10 billion, and could also alter its forward guidance in its post-meeting statement.
Any sign that US interest rates will rise earlier than anticipated could rekindle worries in emerging Asia about capital outflows.
Investors also remained wary of geopolitical tensions in Ukraine as the United States and the European Union imposed sanctions on a small group of officials from Russia and Ukraine after the weekend referendum in Crimea.
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