The Philippine peso and Thai baht hit multi-week highs against a broadly weaker dollar on Tuesday, but their gains were capped by suspected official intervention. Asian currencies also received some support from rising regional stocks on improved risk appetite. The dollar hovered near a 15-month low against major currencies as investors looked to return to leveraged carry traders.
PESO The peso gained 0.3 percent to 46.75 per dollar, a three-week high. But it later pulled back to around 46.8 on suspected dollar-buying intervention by the central bank. A second trader said the central bank was briefly seen early in the day, buying dollars at 46.75.
BAHT The baht hit a one-month high at 33.24 per dollar, prompting active central bank intervention to curb its rally. "The agents are up and actively defending around the current level. Factors to watch today are capital inflows and the extent of dollar weakness," said a Bangkok-based trader, referring to foreign banks representing the Bank of Thailand (BoT). A second dealer said the BoT tried to hold baht gains by buying the dollar at 33.30 baht.
RINGGIT The ringgit gained 0.3 percent to 3.367 per dollar, highest in three weeks, extending its recent gains on broad dollar weakness ahead of an initial public offering of Malaysia's biggest mobile phone operator Maxis Bhd.
"Dollar/ringgit opened at 3.3730/60 and was given straight away and onshore guys are targeting 3.3500 next," said a Singapore-based trader. "Maxis IPO on November 19 should put more downward pressure although offshore placement is still less than originally thought."