Asian forex trading was thinned by public holidays in Singapore, Indonesia, Malaysia and the Philippines on Friday, while the Bank of Thailand intervened again to rein in the baht. The Chinese yuan jumped after the central bank surprised the market by fixing the mid-point at its highest since the landmark revaluation in 2005.
Asian stocks rose to a four-month high as some investors were inspired by positive US and Japanese economic data to pick out bargains, with the shift to riskier assets weighing on the yen.
BAHT The Thai baht inched up to 30.80 per dollar but traders suspected dollar-buying intervention by the central bank to temper its appreciation. The baht was off a 13-year peak at 30.77 hit on Thursday. "The baht's strength is still prompting the central bank to come in, but its job is being made relatively easy this morning by holidays in Singapore, Malaysia and some other Asian countries," said a dealer in Bangkok.
"The baht should range in 30.80-90 today, but it has room to appreciate further as long as the dollar outlook remains weak," added the dealer. The baht has gained 8 percent against the dollar so far this year.
WON The won gained a fifth of a percent to 1,164.7 per dollar, the highest since August 10, as local stocks rose after stronger-than-expected US economic data boosted investors' tolerance for risk. Traders were growing more cautious as the South Korean authorities, worried about the stronger won's impact on export companies, could step in and buy dollars. Seoul's main stock market index rose more than 1 percent for the first 30 minutes of trade as foreign investors were net buyers on the main board.