Most Asian currencies declined on Wednesday following the dollar's rebound but the Taiwan dollar bucked the trend by hitting a fresh 13-year high. Concerns of rising US Treasury yields drawing money away from Asia were compounded by thin end-of-the year markets as investors locked down profits in a year which has seen record sums of money being poured into Asian stocks and bonds.
Dollar/won broke above its 23.6 percent Fibonacci retracement from its May highs to November lows. The next obstacle for it would be the 38.2 percent retracement at just above the 1170 line. On the day however, it is slightly less than a percent weaker on concerns of a possible bank levy on foreign currency debt. But the Taiwanese dollar's posted its best daily performance in more than a decade, gaining nearly two percent on the day. For 2010 though, the baht is set to claim the top spot with year-to-date gains of nearly 11 percent followed by the Japanese yen and the Malaysian ringgit.
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