SEOUL: The Malaysian ringgit hit a near three-week high on Thursday ahead of the country's budget for 2015, leading gains in emerging Asian currencies as minutes from the US Federal Reserve's latest policy meeting eased concerns that it may raise interest rates more quickly than expected
The ringgit rose as high as 3.2310 per dollar, its strongest since Sept. 22, ahead of the country's 2015 budget announcement on Friday.
Investors are hoping the government will follow up on the increase in administered fuel price announced on Oct. 1, by announcing changes to the fuel subsidy regime when Prime Minister Najib Razak delivers the 2015 budget proposals.
An aide to the prime minister has said the government is considering moving off the current blanket subsidy for all consumers to a system that only benefits middle and lower income groups.
Thailand's baht advanced on stop-loss dollar selling and exporters' demand for settlements. Local stocks and bond prices rose.
The Philippine peso touched a two-week high on stop-loss dollar selling.
The dollar index, a gauge of the greenback's performance against six major currencies, fell to a two-week low.
Minutes of the Fed's September meeting released on Wednesday suggested the central bank was in no hurry to raise interest rates. Policymakers were worried the recent rally in the greenback might slow the gradual increase in inflation towards the Fed's 2 percent goal.
Emerging Asian currencies had been under pressure as recent solid US economic data spurred expectations of faster increases in US borrowing costs, which will hurt higher-yield appeals in the region.
Sentiment toward most emerging Asian currencies deteriorated further in the past two weeks with short positions in South Korea's won reaching a near 2-1/2 year high, a Reuters poll showed.
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