Most Asian currencies rise

The joint move by six top central banks to ease a liquidity crunch spurred rises for most emerging Asian currencies on Thursday, but offers by offshore funds and Asian importers limited the gains. On Wednesday, the US Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said they would lower the cost of existing dollar swap lines by 50 basis points from December 5, and arrange bilateral swaps to provide liquidity for other currencies.
The steps boosted riskier assets including stocks and the euro, prompting some hopes of new liquidity eventually coming to Asia. "With the measures, we will see inflows to both stocks and bonds in Asia again, especially from long-term investors," said a senior Singaporean bank dealer. The sovereign problems' impact on Asian economy is also getting more serious, keeping investors away from emerging Asian currencies. On Thursday, data showed that China's factory sector shrank in November, its first fall in nearly three years.
Dollar/won fell as foreign investors continued to scoop up Seoul shares, while South Korean importers and offshore funds bought the pair. Some dealers said the country's foreign exchange authorities were spotted buying dollars almost all day long, while others doubted there was any intervention.
The pair opened at 1,123.0 and fell to as low as 1,122.0, a notch higher than the 61.8 percent Fibonacci retracement at 1,121.3 of its gains between late October and November Dollar/Philippine peso slid with local banks selling, but some interbank speculators looked to buy the pair on possible USD-buying intervention by the central bank.
"The market is reacting to positive developments overnight, but there should be some support around 43.30," said a Manila-based European bank dealer, adding he'd like to buy the pair around that level. Dollar/baht fell, but its slide was limited as Thai importers bought the pair on dips, dealers said. Some interbank speculators looked to build up long dollar/baht positions, despite global major central banks' steps to ease the credit squeeze stemming from the eurozone's credit crisis.