The inflows to emerging Asian currencies helped offset the impact of worries about Portugal's debt problems and higher oil prices amid Middle East unrest, but it does not guarantee further rises in Asian currencies, dealers and analysts said.
Regional foreign exchange authorities are unlikely to allow any sharp moves either way in their currencies as they are fighting inflation while at the same time worrying about losing export competitiveness.
"Why should investors come in when there are so many dangers? Range trading will be the best," said a Kuala Lumpur-based dealer.
Foreign exchange authorities in emerging Asia have recently stepped up interventions in currency markets, buying and selling dollars whenever their currencies moved sharply.
Malaysia's central bank was spotted buying dollars on Thursday, causing investors to cover dollar-short positions, although it expects the ringgit to strengthen over time.
PESO
The peso edged up against the dollar before a central bank rate meeting later in the day.
The Bangko Sentral ng Pilipinas (BSP) is expected to raise policy rates by 25 basis points, a Reuters poll showed, and it signalled on Wednesday a rate increase this week to combat inflation in spite of concerns growth may slow due to Japan's disaster and instability in the Middle East.
The peso may slide briefly if the central bank holds rates as the currency market has priced in a hike bui8lding up dollar-short positions, dealers said.
"The market is already short and it would rise if rates are unchanged," said a European bank dealer in Manila, adding the dealer is looking at 43.70-44.00 if the central bank leaves rates unchanged.
Still, the peso is unlikely to fall further, given relatively strong growth momentum in the country and as it is seen as undervalued, analysts said.
"It is supported by the fairly strong growth momentum in the Philippines economy cyclically and more structurally a solid BoP surplus. Both are related to the sustained repatriation flows," said Andy Ji, Asian currency strategist and economist at Commonwealth Bank of Australia in Singapore.
"PHP is undervalued relative to its historical average and its Asian peers, so we had short TWD/PHP through three-month NDF since January, which has performed pretty well, plus a fairly decent carry."
The peso has risen 1 percent against the dollar so far this year while the Taiwan dollar has gained 2.7 percent.
The Philippine currency broke through a weakening trend line earlier this week on a rate hike expectations, but gave up some gains on dollar short-coverings and the central bank's dollar-buying intervention to slow down its strength.
SINGAPORE DOLLAR
Caution is growing over fresh dollar-buying intervention by the Monetary Authority of Singapore (MAS) as the Singapore dollar hovers around a record high.
It strengthened to as firm as 1.2626, a shy of 1.2620 hit on Tuesday, on real money demand such as flows linked to stocks and bonds amid expectations of further tightening in April to contain inflation.
But currency players expect the central bank to stem speedy gains in the local unit around the record high.
"I believe MAS could be in if we go lower than 1.2620," said a dealer, adding the pair may head to 1.2580 if the level is clearly broken.
WON
The won rose nearly 0.3 percent as foreign investors went on their longest buying spree in more than five months and on demand from exporters such as shipbuilders.
Foreign investors bought a net 257.4 billion won ($230 million), the largest daily purchase since Mar. 16 for a seventh consecutive session. That is the longest daily purchase since Oct. 11.
Still, the won could not extended gains as importers bought dollars for settlements around 1,120.
RUPEE
The Indian rupee was stronger in morning trade after hitting a two-month high in the previous session, on the back of positive local shares and dollar inflows.
"It is possible the rupee will rise with inflows likely to continue. The sentiment will remain positive as long as the flows continue," said Rohan Naik, head of foreign exchange trading at Standard Chartered Bank in Mumbai.
Foreign funds in 2011 have bought $374.55 million worth of shares through March 22. However, they have sold shares of about $1.84 billion so far this year.
The euro's losses against the dollar and high global crude oil prices may temper the rupee's gains, dealers said.