Debt woes slow Asian currencies gains

The South Korean won eased for the week, while its peers recorded smaller weekly gains than before, weighed by worries of the sovereign crises in the US and eurozone and on intervention by foreign exchange authorities. Interbank speculators and some model funds on Friday covered dollar-short positions further as some fiscally hard-line Republican blocked a budget deficit plan proposed by their own congressional leaders, boosting worries about a disastrous US default.
The won fell 0.2 percent versus the dollar for the week after rising 0.6 percent in the prior week, with dealers citing intervention by South Korean foreign exchange authorities to defend 1,050 per dollar. The Singapore dollar, which had hit record high almost every day since mid-July, has risen 0.3 percent against the US dollar this week after 0.9 percent last week.
The ringgit weaken past a support line as interbank speculators covered dollar short positions. The Singapore dollar also suffered from US dollar short covering. The won eased as some model funds covered dollar-short positions and on fixing-related dollar demand, dealers said.