The South Korean won and the Singapore dollar led gains in their Asian peers on Wednesday as some investors resumed chasng riskier assets amid hopes for an aid package for Greece.
Emerging Asian currencies are expected to stay firm on views that investors may seek risks again on ample liquidity after unwinding their risk positions in May, but their gains may be limited by any negative headlines about the eurozone and a weakening global recovery, analysts and dealers said.
Emerging Asian currencies founded relief since late May from a the euro's rebound on eased worries about the Greek debt crisis after suffering correction in most last month.
Still, most of them stayed stronger than last year with the Taiwan dollar up 6.3 percent against the US dollar and the won having gained 5.6 percent.
The won hit a four-week high against the dollar on demand linked to foreign investors' stock purchases and they continued to bought Seoul shares even after reporting their biggest daily net purchase on Tuesday in more than a month.
The won strengthened to as firm as 1,074.3 per dollar, the strongest since May 4.
The local currency is expected to find resistance between 1,064 and 1,057.
The former is the 76.4 percent retracement level of its weakening trend during the global financial crisis in 2008 and the latter is a previous major support that will now afford good resistance.
So, traders can consider playing dollar/won from the long side, with a 1,055 stop for a return to 1,100 - the higher end of a well-established range.
Short-term speculators bought the Singapore dollar with aiming got a break a resistance of 1.2280 per the US dollar, lifting the city-state currency to 1.2292.
Earlier, there was talk of the central bank's intervention around 1.2315, but the Monetary Authority of Singapore pulled the bids, dealers say.
If the Singapore dollar clearly breaks through 1.2280, the high of May 11, it is seen heading to test record low of 1.2212 hit on May 2 without major technical resistances.
The peso rose in thin trading with interbank speculators merely looking towards other regional for cues. The Philippine central bank was spotted buying dollars at around 43.19, dealers said.