Won, peso rise

The South Korean won and the Philippine peso rose slightly on Monday as speculators bought some of battered emerging Asian currencies on dips, but regional units later gave up some of their gains on persistent worries about a global economic slowdown and the eurozone's debt crisis. Investors will be eyeing Federal Reserve Chairman Ben Bernanke's speech on Friday for any hints on further policy easing which could keep the US dollar under pressre.
Most emerging Asian currencies have firmed so far this year, but are off their highs as investors slash exposure to riskier assets amid worries that the US could slide back into recession and concerns that European leaders appear unable to contain the euro zone's debt problems. Interbank speculators cleared dollar-long positions, helping the won to stay firmer despite further selling of local equities by foreign investors.
The South Korean currency is also seen having a support around 1,090-1,095 per dollar as investors are cautious over possible dollar-selling intervention. Offshore players also bought the country's treasury bond futures, offsetting their stock sales and supporting the local currency.
Interbank speculators bought the peso but players remain reluctant to lift the Philippine currency too much on persistent worries about the US economy and the eurozone. There was market talk of model funds using the peso as a funding currency. Earlier, the peso strengthened to as firm as 42.53 per dollar, filling the gap in the previous session. That level has been seen as resistance.
The rupiah stayed weaker than a 55-day moving average on importers' end-month dollar demand for settlements, dealers said. Foreign investors' large stock sales on Friday also are seen putting pressure on the Indonesian currency. The rupiah eased 0.1 percent to 8,550 against the dollar, softer than the moving average of 8,536. Dollar/rupiah has the top of the daily Ichimoku cloud around 8,565. On Friday, foreign investors sold a net $203.4 million in Indonesian, compared with a 14-day moving average of net daily sales of $53.8 million, according to Reuters data. The baht edged down against the dollar on a weaker euro.