SINGAPORE: The South Korean won led gains among emerging Asian currencies on Monday, underpinned by the yuan's rebound and broad weakness in the dollar, with investors covering short positions ahead of a US Federal Reserve policy meeting.
Federal Reserve policymakers will meet on Tuesday and Wednesday and are expected to unanimously decide to continue tapering the central bank's massive bond-buying stimulus for now.
The won ended local trade up 0.6 percent at 1,035.0 per dollar. The gain was the largest daily percentage appreciation since April 9.
Local exporters and offshore funds chased the South Korean currency despite growing caution over possible intervention by the foreign exchange authorities.
The Philippine peso rose on remittances inflows from overseas Filipino workers and as investors covered short positions.
Thailand's baht gained as Bangkok shares advanced when most other Southeast Asian stocks slumped.
Some investors, however, booked profits as factory output and exports in March fell more than expected.
The Malaysia ringgit appreciated as investors cut bearish bets on the currency against the US dollar and the Singapore dollar.
That came as the yuan rebounded after China's central bank set its official midpoint firmer for the fourth straight session.
The dollar fell against a basket of six major currencies.
Some investors added bullish bets on emerging Asian currencies against the dollar, expecting Fed chief Janet Yellen to reiterate a stance of keeping policy accommodative for the time being, analysts said.
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