The South Korean won rose on Tuesday on renewed buying by exporters following a selloff the previous day, while the Philippine peso tracked the euro's weakness amid fears over the eurozone's fiscal woes. The euro remained under pressure despite a rebound from a four-year trough, as investor worried that austerity policies could undermine the continent's economic recovery.
News that the US Senate had voted for the US government to oppose International Monetary Fund bailout packages to countries unlikely to repay them weighed on the euro. The won gained as much as 0.7 percent to 1,144.8 per dollar as exporters were buying after its 2 percent tumble in the previous day.
Seoul shares were down 0.5 percent. The Philippine peso shed a third of a percent to 45.35 per dollar, taking its cue from the euro's protracted weakness. "The peso seems to be tracking the euro, so all eyes are on the euro now," said a trader in Manila.
The daily correlation between peso and euro rose to 0.81 percent on Tuesday from 0.74 percent a week ago, Reuters data showed. One-month dollar/peso NDFs edged up to 45.43 from 45.34 late on Monday, while one-month onshore forwards inched up to 45.436 from 45.317.
The spread between onshore and offshore forwards shrank to just 6 points from more than 500 points a week earlier. The Thai baht gained nearly 0.6 percent to 32.28 per dollar in the wake of an overnight lull in the violence in central Bangkok. "The dollar/baht spread of 32.35/41 this morning is quite wide, indicating that few people want to buy the pair. Its normal spread is only two satang compared with five today," the dealer said.