Weak dollar powers Asia FX

Emerging Asian currencies started the week on a firm tone as the dollar's broad weakness prompted investors cut bearish bets in regional units, and helped global stocks rise. Malaysia's ringgit was set to post the best day in about seven weeks. The South Korean won advanced on capital inflows and demand from exporters.
The Thai baht hit a two-week high as the 10-year bond price jumped. Indonesia's rupiah gained as the government pledged to work with the central bank strengthen the currency.
The dollar slid against a basket of six major currencies in the uncertainty over the timing of US interest rate increases.
The greenback had rallied in recent months on expectations that the Federal Reserve may begin to raise borrowing costs as early as June, given strong indicators of expansion in the US economy.
Such expectations eased after the US central bank lowered its growth forecast and inflation outlook last week. A majority of Wall Street's top banks now expect that the Fed will hold off raising rates until at least September, a Reuters poll found.
"A longer and more modest window for the Fed's lift-off should allow further breathing space for EM (emerging markets), including Asia, for 2015," said OCBC Bank analysts in a client note.
The ringgit advanced 1.2 percent against the dollar, its largest daily gain since February 4, according to Thomson Reuters data.
Traders covered short positions in the second-worst performing Asian currency so far this year, while the currency found further support from fixing-related demand.
Still, sliding oil prices held back investors from chasing the ringgit further on concerns that lower crude oil prices could undermine Malaysia's current account surplus and widen its fiscal deficit. Malaysia is a net oil exporter.
Oil prices dropped in early Asian trade after Saudi Arabia said over the weekend that it would not unilaterally cut its output. The won gained as foreign investors bought South Korea's bond futures and stocks.
But the South Korean currency pared much of its earlier gains as caution over possible intervention by the foreign exchange authorities to stem its strength took hold.
Some traders suspected intervention to defend the 1,110 per dollar level.
Importers also bought dollars for payments, limiting the won's gains.