Most emerging Asian currencies rose on Friday as Greece moved closer to averting a messy default and securing fresh international aid, boosting investors' appetite for riskier assets. Most regional units were poised for slight losses for the week, however, as concerns about slowing growth in China and Europe prompted investors to book profits after recent gains.
Investors in emerging Asian currencies, however, had largely priced in such a deal already, and opted to book profits ahead of US job data later in the day. Softer economic data from China also weighed on sentiment on Friday. "The upside should be capped for a number of emerging Asian currencies," said Sacha Tihanyi, senior currency strategist for Scotia Capital in Hong Kong.
The Indian rupiah was the worst performer among emerging Asian currencies for the week, sliding 0.9 percent against the dollar, according to Thomson Reuters data. Dollar/won pared most of its early losses as offshore funds covered short positions near a 200-day moving average and on demand from importers. Weak China data also influenced the pair.
South Korea's finance minister dismissed speculation that his remarks on the won on Wednesday indicated his preference for a stronger won. Finance Minister Bahk Jae-wan told reporters his earlier comment on the won was not related to the government's policy and he did not mean to say the government favours a direction for the won against other currencies.
On Wednesday, he said changes in foreign exchange rates have now become more important for local inflation than for the country's foreign trade performance. US dollar/Taiwan dollar slid on foreign portfolio inflows, but Taiwanese importers and oil companies limited its slide. Exporters are inactive as they do not see current levels as attractive enough, dealers said. Meanwhile, some traders said agent banks of the central bank were spotted bidding below 29.400 and offering above 29.570. Dollar/Philippine peso fell on follow through selling after the pair on Thursday broke through support at 42.60.