Emerging Asian currencies mixed

Emerging Asian currencies were mixed on Wednesday amid month-end corporate flows, but most were set to post gains for October as signs of a global recovery attract inflows to the region. The South Korean won hit a near 14-month high on exporters' demand for month-end settlements, while the Indonesian rupiah slid due to dollar demand from local corporates.
The Singapore dollar eased with intervention by authorities spotted, and the Philippine peso edged lower on worries about steps by the central bank to curb appreciation in the best performing Asian currency this year. Still, most of emerging Asian currencies were headed for monthly gains, led by the won. The South Korean currency rose 1.9 percent against the dollar on demand from offshore funds and exporters, taking its year-to-date gains to 5.6 percent.
"The global economy is getting better. If the recent economic recovery is sustained, Asian currencies will stay firm, led by the won," said a senior Malaysian bank dealer in Kuala Lumpur. The Philippine peso has gained 1.2 percent so far this month, buoyed in part by Moody's Investors Service's upgrade on Monday of the country's sovereign rating to just one notch below investment grade, according to Thomson Reuters data.
The Singapore dollar has risen 0.5 percent after the central bank unexpectedly kept to its tight monetary stance earlier this month. The won touched 1,090.0 per dollar, its strongest since September 9, 2011, on demand from exporters for month-end settlements. The currency is seen staying firm in November and it is expected to head to 1,086.3, the 76.4 percent Fibonacci retracement of its depreciation between August and October last year. The next target would be 1,077.7, its weakest on September 9, 2011. One-month dollar/rupiah NDFs rose 0.1 percent to 9,655. The Singapore dollar eased as the central bank was spotted intervening through agent banks to keep the city-state's currency weaker than 1.2200 to US dollar, dealers said.
The Philippine peso turned slightly weaker as short-term investors took profits amid caution over measures by the central bank to stem its strength. Interbank speculators also squared positions before holidays. Financial markets in the country will be closed on Thursday and Friday for holidays.