Most Asian currencies held their ground on Tuesday in reaction to a report that the Federal Reserve was considering a smaller bond buying scheme than its previous asset purchase plan. Weaker US and Asian shares, as well as a broadly firm dollar caused investors to book profits on riskier currencies, but brighter economic outlook for Asia kept supported most of the region's currencies, analysts said.
Earlier, the Asian Development Bank said Asia and the Pacific would grow this year at the fastest clip since 2007, but growth would moderate in 2011. The won turned higher against the dollar as exporters' demand for end-month settlements made investors clear dollar-long positions, though they remained cautious over possible further intervention by the foreign exchange authorities.
The won ended domestic trade up 0.2 percent at 1,146.3 per dollar after easing to as far as 1,150.3. Thai baht moved near a 13-year high of 30.56 per dollar, with the market wary of central bank intervention if it strengthened further. The baht has gained 9.1 percent against the dollar this year, the third-best Asian performer after the ringgit and yen.
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