Most emerging Asian currencies rise

Most emerging Asian currencies rose on Monday in subdued trading as investors continued to seek the region's higher yields on expectations that central banks in developed countries may ease monetary policies further. China's yuan kept failing to ride on the trend and touched its weakest since December 2010 as a lack of signs of intervention to prop up the renminbi indicated the central bank would tolerate a further weakening of the currency.
Trading in Asia was relatively inactive ahead of the US Independence Day holiday and regional festivals to celebrate the end of the Muslim fasting month. Indonesian financial markets are already closed and will reopen on July 11.
Thailand's baht led regional gains, hitting a two-month peak on capital inflows and catch-up demand. The local financial markets were shut on Friday when most of its regional peers rose.
"In the lead-up to Brexit, global investors were positioned extremely defensively in Asia EM and now these underweight positions are moving to overweight," said Stephen Innes, a senior trader for FX broker Oanda Asia Pacific in Singapore.
"Potentially, massive easing programs from the BOE, ECB and BOJ are in the offing, which could prove supportive for regional asset markets, amidst extremely buoyant investor sentiment," Innes said, referring to the Bank of England, the European Central Bank and the Bank of Japan.
Given uncertainty over the long-term impact on the world economy of Britain's vote to leave the European Union, global central banks are expected to take further monetary stimulus moves, investors and analysts have said.
The baht rose 0.4 percent to 35.00 per dollar, its strongest since May 3.
Thailand's government bond prices rose. Foreign investors bought a combined net 113.4 billion baht ($3.2 billion) worth of local bonds in June, the Thai Bond Market Association data showed.
Bangkok shares recently found support as foreigners were net buyers of 18.4 billion baht in equities last month. .
The Thai currency has a chart resistance at the session high, the 76.4 percent Fibonacci retracement level of its depreciation from March to May, analysts said.
South Korea's won eased on growing caution over possible intervention by the foreign exchange authorities to stem its strength.
The won on Friday touched a near two-month peak on stock inflows and demand from exporters for settlements.
Still, traders were looking for chances to buy the won on dips as foreign investors continued to buy Seoul shares.