Most Asian currencies surge

Most emerging Asian currencies extended gains on Monday, enjoying capital inflows to the region after the Federal Reserve's aggressive policy stimulus last week, and the Indian rupee hit a four-month high on the government's reforms.
The South Korean won hit a six-and-a-half month high on stock inflows, and the Taiwan dollar touched its peak in more than four months on incoming funds. The Indonesian rupiah also hit a near seven-week high on bond inflows.
"Asian currencies have room to rise further as the Fed did not only pump up money but also let investors buy time," said Jeong My-young, Samsung Futures' research head in Seoul. Still, investors grew more cautious over possible intervention by local authorities to stem their currency gains. The central banks of Taiwan and Philippine were spotted buying dollars, dealers said. The 14-day relative strength indices (RSI) of US dollar/Singapore dollar, US dollar/Taiwan dollar, dollar/rupee and dollar/baht stayed below the threshold 30, indicating those pairs are in oversold territory.
The Philippine peso and the Singapore dollar eased. The Taiwan dollar leaped to 29.198 against the US dollar, its strongest since May 3, on foreign funds inflows and as domestic exporters chased it on expectations of further appreciation.
The rupiah hit 9,443 to the dollar, the local unit's strongest since August 1 on bond inflows, dealers said. The Indonesian currency found a resistance at that level as local banks bought dollars on behalf of their local corporates. Still, the rupiah is expected to rise further on more inflows with the Fed's stimulus, dealers said. "The QE3 will boost inflows and investor confidence in foreign direct investments here," said a Jakarta-based dealer, adding the rupiah may head to 9,400.
The won advanced to 1,113.3 per greenback, its strongest since March 2, on demand linked to foreign investors' stock purchases. Foreigners bought a net 503.1 billion won ($450.38 million) worth of Seoul shares after absorbing a net 1.28 trillion won on Friday, according to the Korea Exchange data. Caution grew over possible intervention by the foreign exchange authorities to stem the won's strength, and domestic importers bought dollars for payments.
The peso started local trade firm at a session peak of 41.33 per dollar, but turned lower. The central bank was seen around 41.35, dealers said. "Onshore swap points collapsed and were quoted at negative points. Negative points have a negative carry on long peso positions and make it expensive to hold on to dollar short positions overnight," a foreign bank dealer in Manila.