Most emerging Asian currencies lost ground on Wednesday as global investors shunned riskier assets with the US presidential election race tightening just days ahead of the Nov. 8 vote. South Korea's won hit a near four-month low on heavy selling from offshore funds amid a local political crisis surrounding President Park Geun-hye.
The Malaysian ringgit fell as sliding oil prices underscored concerns over the country's energy revenues and its finances.
Most government bond prices slid. China's yuan edged up as the central bank set its daily guidance rate the strongest in nearly two weeks on the dollar's broad weakness.
But that did not really alleviate deteriorating sentiment on other emerging Asian currencies.
Investors were starting to unwind long-held bets on a victory for Democratic candidate Hillary Clinton over Republican rival Donald Trump.
Some polls showed Trump ahead of Clinton by 1-2 percentage points, while a Reuters/Ipsos opinion survey on Monday showed Clinton held a five-percentage-point lead.
The Mexican peso, considered a rough barometer of the ebb and flow of Trump's fortunes in the presidential race, struggled at a near one-month low against the greenback.
A possible Trump victory is seen negative to Asia due to his more protectionist trade policy, while markets see Clinton as more likely to maintain the status quo.
Regional currencies have been under pressure from expectations of US interest rate hike in December.
Solid US economic data such as manufacturing activity added to the prospects, although the US central bank is likely to stay pat at this week's Tuesday-Wednesday meeting.
"Markets are more worried about US election and the upcoming Fed meeting," said Andy Ji, Asian currency strategist for Commonwealth Bank of Australia in Shanghai.
"Emerging Asian currencies may rebound a bit after this week's FOMC and the election as the dollar is seen overbought.
But if Trump wins, that will not happen as the region doesn't like Trump very much," Ji added, referring to the Federal Open Market Committee.
The won lost 1.1 percent to 1,152.3 per dollar, its weakest since July 12.
Offshore investors dumped the currency, overwhelming demand from exporters for settlements, traders said.
South Korea's presidential office earlier named a new prime minister and finance minister, the highest-level shake-up yet since President Park's administration was rocked by a scandal involving a friend accused of meddling in state affairs.
The reshuffle did little to soothe investor sentiment, although finance minister designate Yim Jong-yong pledged to maintain macroeconomic policy accommodative and keep Asia's fourth-largest economy stable.
"Everything is about politics. Regardless of the designate's policies or capabilities, everybody is focusing on political uncertainties," said Jung Sung-yoon, a foreign exchange analyst at Hyundai Futures in Seoul.
The currency is likely to weaken to 1,156.7, a 200-day moving average, analysts said.
The won has been stronger than the average since late June.
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