The Malaysian ringgit and Singapore dollar rose in choppy trade on Thursday, boosted by dealers scooping up cheapened Asian currencies after China's rate hike caused a shift out of riskier currencies a day earlier. However, the South Korean won slid with uncertainty remaining high about the pressure on developing economies to let their currencies appreciate at the G20 finance ministers meeting this weekend.
The dollar index against a basket of major currencies fell 0.3 percent but the yen still hovered near 15-year highs against the US currency. The Malaysian ringgit rose almost a third of a percent to 3.1130 per dollar, tracking a broad Asian rally. Short-term dollar/peso NDFs were bid down with the most liquid one-month dollar/peso NDFs falling to 43.41, some 12 points higher than the spot and implying a 0.26 percent one-month fall from the spot.
The spot peso rose 0.34 percent to 43.23 against the dollar after Geithner's comments. The won eased after Geithner's comments and on concerns of possible Korean regulations to curb foreign inflows. The won was quoted at 1,128.5 per dollar, down 0.1 percent from its close. It had earlier strengthened to 1,120. The Thai baht rose nearly a quarter percent early, tracking broad Asian rally as markets quickly discounted China's surprise rate rise. Dollar/baht was bid at 29.84 in afternoon against 29.90 late on Wednesday. The baht has gained 2.9 percent in the past month and 11.6 percent this year, making it the second-strongest Asian currency after the yen.
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