Asian currencies mostly up

Most Asian currencies rose against the dollar on Wednesday as regional share markets rebounded after top US executives reassured investors that the banking system can withstand shocks from credit-related losses. The South Korean won briefly touched 910.8 per dollar, up about 0.8 percent from late Asian trade on Tuesday.
The Singapore dollar hit 1.4435 to the US dollar, about 0.5 percent stronger than late Asian trade on Tuesday. "US banking houses and funds are still trying to sell (the US dollar) on spikes as they see further strength in the Singapore dollar in the medium to long run," said a Singapore-based trader.
The won and the Singapore dollar led Asian currencies lower on Tuesday amid concerns about the fallout from the US subprime market crisis, which also hit Asian stocks hard.
The Malaysian ringgit advanced as far as 3.335 per dollar, up 0.45 percent from late Asian trade on Tuesday. "There has been a bit of improvement in sentiment toward risky assets," said a trader in Kuala Lumpur. US stocks snapped a four-day losing streak on Tuesday, partly helped by comments from the chief executive of Goldman Sachs Group that the investment bank would not face big credit losses stemming from the US subprime market crisis.
Asian shares followed suit, with MSCI's measure of Asia Pacific stocks excluding Japan jumping almost 3.5 percent. Meanwhile, the high-yielding Philippine peso rose as far as 42.87 per dollar, up a quarter of a percent from Tuesday's close. But the Indonesian rupiah another high-yielder in Asia, was little changed at around 9,170 per dollar.
Analysts said investors' appetite for risky assets improved as stocks picked up, but lingering concerns about the impact from credit market turbulence continued to weigh on sentiment. "The market continues to dance to the tune of risk sentiment," said Thio Chin Loo, currency strategist at BNP Paribas.
"When risk sentiment sours, the dollar recovers as markets reduce exposures. With investors long Asia, Asian currencies get hit. Sentiment took a turn for the better yesterday with Wall Street's rebound. Hence, Asian currencies are better bid."
Investors await data on US retail sales and producer prices later in the day to see whether the Federal Reserve would cut interest rates further to help ward off an economic slowdown, following two rate cuts since mid-September.
Asian currencies, led by the peso, have gained strongly since the Fed cut its key interest rate by a half-point on September 18 and further policy easing would encouraage risk-taking, analysts say. Federal Reserve Chairman Ben Bernanke will speak on Federal Open Market Committee communications later in the day.