Most emerging Asian currencies rose on Wednesday as firm US and European data boosted risk appetite, although some suffered from profit-taking on persistent worries about the eurozone's debt crisis. "The current 'rally' is driven by technicals. Since it coincides with better US data dump in past weeks, some shift in market expectation has taken place," said Andy Ji, Asian currency strategist for Commonwealth Bank of Australia in Singapore.
On Tuesday, the city-state's currency strengthened past the 76.4 percent retracement of its weakness in December last year. Dollar/won fell on stock inflows but importers' demand for settlements limited impact of such flows, dealers said. The pair started local trade down 0.5 percent at 1,145.0, lower than the 61.8 percent Fibonacci retracement at 1,146.0 of its December rally. The pair is seen having support at the opening level, around lows of December 21 and December 26. Dollar/ringgit fell below the 38.2 percent Fibonacci retracement at 3.1382 of its rise between October and December.
The pair found some support from higher US dollar/Singapore dollar. US dollar/Singapore dollar rose as investors took profits from the city state's currency's overnight strength to 1.2822. But fresh selling interest was also found at 1.2880, around a 55-day moving average of 1.2877. Momentum funds also sold the pair.
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