Asian currencies up

The South Korean won led most Asian currencies to multi-month highs versus the dollar on Monday on signs of a global economic recovery, triggering the Thai central bank to intervene to curb the local unit's strength. Signs of improvements in the global economy, reinforced by data showing smaller-than-expected US job losses in April, boosted Asian stocks while the dollar hit a four-month low against a basket of major currencies.
WON The South Korean won jumped 1.3 percent to 1,230.8 per dollar, its highest since October 31. It later pulled back to 1,235 amid fears of central bank intervention. On Friday, traders suspected the authorities were buying dollars in the market to curb further rise in the won, which has rebounded 20 per cent since hitting a 11-year low on March 6.
Some traders expected the won to test the key 1,200 level in the near term, but they also cautioned about further central bank intervention to help the country's struggling exporters. Meanwhile, the dollar/won non-deliverable forwards curved shifted lower but failed to match the spot's sharp move. One-year dollar/won NDFs fell to 1,217.9, implying a 1.2 percent won appreciation from the spot compared to 2.4 percent on Friday.
BAHT The Thai baht gained 0.8 percent to 34.58 per dollar - its highest since late December, even as traders cited modest central bank intervention to cap the currency's rise. "The Bank of Thailand has been capping the baht's gains, but is not aggressive," said a trader in Singapore.
A Bangkok-based trader also suspected the central bank was buying dollars near 34.80 to limit the baht's strength. The baht has gained 4 percent since early March, part of an Asia-wide currency rally fuelled by tentative signs of global economic recovery.
SINGAPORE DOLLAR
The Singapore dollar gained 0.2 percent to 1.4562 per US dollar, its highest since January 5, as the US currency weakened broadly. But the Singapore dollar's gains still trailed those in most regional peers as investors feared its recent strength may trigger official dollar-buying intervention.
"US houses and funds are still selling US dollars non stop despite on-and-off rumours the authority will buy USD," said a Singapore-based trader. Singapore dollar has gained 6 percent since early March. Investors fear that the central bank, which lowered the centre of the currency's trade-weighted band in April to help spur the recession-hit economy, might move to tame the currency.