Most Asian currencies edge up

The Philippine peso and Indian rupee rose on Tuesday, tracking gains in the euro and Asian stocks, while the yuan edged up in offshore forwards on hedge fund buying following the previous day's sharp fall. The euro held its ground on Tuesday after rebounding from support at a three-week low against the dollar, helped by increased risk appetite off the back of US stock gains although squabbling over Greece remains a drag.
PESO The peso gained almost 0.4 percent to 45.52 per dollar, matching a 19-month high hit last week. "Some corporate demand for dollars is coming out close to 45.50 levels," said a trader in Manila. One-month dollar/peso NDFs eased to 45.64 from 45.73 on Monday, while one-month onshore forwards fell to 45.68 from 45.75. The spread between one-month onshore forwards and NDFs widened to 39 points from 15 points the previous day.
BAHT The baht inched up to 32.32 per dollar, buoyed by foreign inflows to Thai stocks. "Fund managers still look willing to invest longer term in this region, which should keep up the inflows although the momentum of foreign investment should gradually fade this week," a Bangkok-based dealer said. Foreigners have invested over $1.2 billion in Thai stocks since February 22, an amount rivalling all of last year's. The Thai market index rose 63 percent in 2009 while the baht was Asia's third-strongest currency. The baht has risen 3 percent against the dollar this year.
WON The South Korean won wiped out early small gains and ended local trade slightly down against the dollar on Tuesday as lingering concerns over Greece's debt issues cut stock gains. The won ended the session at 1,137.1 per dollar after trading in a narrow range between 1,133.2 and 1,137.3, compared with Monday's domestic close of 1,135.7.
"The Greece issue is and will continue to be the main drag for the time being (on the won)," said a foreign bank dealer. Anxiety over Greece's sovereign debt problems has hurt risk preference among global traders, resulting in their reduction of holdings in riskier assets such as the won. Seoul's main stock market index rebounded following Wall Street's gains overnight but gains were also limited by the Greece concerns.