South Korea's won led losses among emerging Asian currencies on Wednesday as the dollar stayed firm after rallying overnight, with expectations of prospective US interest rate hikes still in force. The won slumped on growing caution over possible intervention by South Korean foreign exchange authorities to stem its strength. The Philippine peso slid as exports fell in February for a third straight month.
The dollar advanced against a basket of major six currencies overnight as investors took its slide on last week's disappointing US payrolls data as a chance to buy.
The US Federal Reserve is still expected to raise interest rates this year, while other central banks, including some in Asia, are seen keeping easier monetary policies.
"I'm still long USD versus Asian currencies because most people have missed the selloff in Asian currencies or are still stuck long Asia FX," said Sean Yokota, head of Asia strategy for Scandinavian bank SEB in Singapore.
The recent strength in regional currencies was a good opportunity to sell them, Yokota said.
Emerging Asian currencies had found support from expectations that the Fed may delay interest rate hikes on some weak US economic data, especially March non-farm payrolls.
The won fell as nerves over intervention prompted traders and offshore funds to sell the currency.
On Tuesday, the won hit 9.0611 against the yen, its strongest since March 2008. The strength increased wariness against intervention by South Korean regulators in the knowledge that exporters compete against Japanese rivals in overseas markets for various products such as cars.
Still, the won pared some of losses as exporters bought it on dips for settlements. The peso eased on data showing Philippines' exports in February fell 3.1 percent from a year earlier after dropping 0.5 percent in January and 3.2 percent in December.
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