Hedge funds resumed adding exposure to emerging Asian currencies on Wednesday, sending the Singapore dollar to another record and the Malaysian ringgit to its strongest since the region's 1997/98 financial crisis, as fears of a looming US debt default pulled down the greenback.
The Singapore dollar broke through psychological resistance at 1.2000 per US dollar to hit a fresh peak. It has hit successive record highs nearly every day since mid-July. Agent banks were spotted buying greenbacks at the historical peak of 1.1993, dealers said.
The ringgit traded as firm as 2.9340 per dollar, according to dealers, the strongest since late September 1997 as the Malaysian central bank was not spotted intervening. The Philippine peso hit an over three-high against the dollar as leveraged names and interbank speculators keep building dollar-short positions amid broad sales in the greenback.
The peso strengthened to as firm as 42.08, the strongest since April 2008. The won touched a near three-year peak on offshore players' demand and exporters' bids for end-month settlements. The baht slid, bucking gains in other emerging Asian currencies, on the central bank's intervention.
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