Won leads gains in Asian trade

The South Korean won led gains in most of emerging Asian currencies on fresh hopes of Europe's progress to tackle its debt crisis, but regional units gave up some earlier gain as investors booked profits before Italy's debt sale.
Traders initially welcomed change of leadership in Italy and Greece with some optimism that the debt-ridden countries may accelerate changes to resolve the sovereign problems, lifting riskier assets including emerging Asian currencies, stocks and commodities. Credit spreads also tightened.
Last week, emerging Asian currencies fell on persistent worries about a eurozone bond market meltdown with Italian 10-year bond yields jumping above 7 percent, a level considered unsustainable. Dollar/won slid on supplies from exporters including shipbuilders for settlements. The pair recovered much of earlier slides as offshore funds and importers bought it on dips, prompting interbank speculators to cover short positions.
Dollar/peso edged down in slow trading, but it found support from short-covering demand. It started local trade at 43.180 but rose to as high as 43.250, above a 200-day moving average of 43.226. US dollar/Singapore dollar rose with leveraged and fast money touted buyers above the 1.2800 handle. The pair found support as the euro failed to rose above 1.3800. Dollar/baht eased with dull interest on lack of any significant flows.