The South Korean won and Malaysian ringgit led a broad rally in Asia on Wednesday, riding on the euro's strength against the dollar as investors snapped up regional stocks on improve risk appetite. The euro steadied after rising sharply the previous day against the dollar as investors cut short positions on views that the fall in the euro over Greece's debt problems had run its course.
The euro had shed as much as 10 percent since late 2009 at one point as worries over whether Greece could service its debt mounted, and currency speculators later reversed record short euro positions they had built into last week. Markets in China and Taiwan remained shut for holiday.
WON The won jumps 1 percent to 1,139.9/USD - its highest in a month, as investors bought local stocks. Meanwhile, dollar/won NDFs tumbled across the curve as hedge funds rushed to cut their US dollar holdings, with one-month NDFs hitting 1,142.4, the lowest in nearly a month.
"We see leveraged and option guys selling dollar/won from the opening this morning through 1,144.5," said a NDF trader in Singapore. On the chart, the spot won looks to gain further after decisively breaking its 30-day moving average around 1,145. Both MACD and slow stochastic point to near-term strength.
RINGGIT The ringgit gained just over 1 percent to 3.383 per dollar, taking cue from the euro's strength. The ringgit was playing a catch-up with its regional peers after a holiday.
BAHT The baht gained as much as 0.3 percent to 33.05 per dollar in early trade before retreating to 33.12. "We could see more risk appetite for a few days while waiting for a clearer bail-out package for Greece. With Greece temporarily in the back seat, the baht should range 33.10-20 for the time being," a Bangkok-based dealer said.
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