SINGAPORE: Most emerging Asian currencies rose on Wednesday as the yen advanced to briefly strengthen past 119 per dollar, prompting short-covering in regional units despite rising risks of deflation in China.
South Korea's won outperformed regional peers to hit a near two-week high as the firm yen eased concerns that the country may lose export competitiveness to Japan.
The won rose as much as 0.8 percent to 1,099.1 per dollar, its strongest since Nov. 27, on demand from local exporters and offshore funds. The currency pared some of the gains on caution over possible intervention by the foreign exchange authorities to check its strength.
The yen advanced as global growth concerns and political uncertainty in Greece dented risk appetite.
Malaysia's ringgit and Singapore's dollar also gained as investors cut bearish bets with the US dollar broadly easing.
The Chinese yuan turned higher as some traders suspected intervention by the central bank to support the currency.
Most emerging Asian currencies earlier fell after data showing China's consumer inflation in November hit a five-year low, signalling persistent weakness in the world's second-largest economy.
The slower inflation numbers stoked expectations that China will move more aggressively to head off the risk of deflation.
Meanwhile, the Philippine peso slid in thin trading as the country's exports in October grew at their slowest pace in six months.
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