Asia forex: Baht at two-week high

SINGAPORE: The Thai baht hit a near two-week high on Tuesday as a lack of violence in
anti-government protests and currency intervention prompted investors to cover short positions, while most other emerging Asian currencies fell amid weaker stocks.
    The baht rose as much as 0.5 percent to 32.82 per
dollar, its strongest since Jan. 2, as local banks and U.S.
investors bought the currency, traders said.
    Bangkok shares turned higher, outperforming most of
theirs regional peers.
    Foreign investors were net buyers of the country's stocks on
Monday, increasing their net purchases in the first 13 days to
4.8 billion baht ($145.2 million), according to Thomson Reuters
data.
    Still, investors remained wary of escalating political
turmoil as anti-government protesters said they would tighten
the blockade around ministries. Hardline factions threatened to
storm the stock exchange. 
    "The longer the quagmire continues, the greater the threat
of military intervention in order to ease the economic strain,"
Scotiabank said in a client note.
    "This in itself would be initially negative for Thai assets,
though it wouldn't be unusual to see a relief rally once the
dust settles as markets breathe a sigh of relief that there is
some sort of forward movement to ease general commerce."
    The baht has chart support at 32.84, the 23.6 percent
Fibonacci retracement of its December-January depreciation,
analysts said. The next support is seen at the 38.2 percent
level of 32.66.
    Some analysts advised selling the baht on rallies to 33.34,
the 61.8 percent retracement of its 2009-2013 appreciation.
    The outlook for emerging Asian currencies also remains weak
as the U.S. Federal Reserve is expected to keep scaling back its
stimulus despite disappointing December U.S. jobs data, which
will buoy the dollar.
    
    PHILIPPINE PESO
    The peso fell on dollar demand from local importers and
weaker Manila stocks.
    The Philippine peso is likely to stay under pressure, but
traders hesitated to pushed the Philippine currency weaker than
44.750 per dollar.
    "That level should be an easy target. But beyond that the
picture becomes a bit more fuzzy," said a Philippine bank trader
in Manila.
    The trader said there is too much uncertainty on how quickly
the Fed would scale back its stimulus.
    Last week, investors suffered short squeezes after building
up excessive bearish bets with a break of the level.
    The peso had been firmer than 44.750 for about three years
before weakening to 44.851 on Jan. 7.
    
    SINGAPORE DOLLAR
    The Singapore dollar fell as local investors sold
the unit.
    Interbank speculators and funds led the selling, traders
said.

    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0455 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen       103.27         102.98       -0.28
  Sing dlr        1.2670         1.2648       -0.17
  Taiwan dlr      30.023         30.112       +0.30
  Korean won     1058.20        1056.70       -0.14
  Baht             32.87          32.99       +0.37
  Peso             44.72          44.61       -0.26
 *Rupiah        12045.00       12045.00       +0.00
 *Rupee            61.52          61.55       +0.05
 *Ringgit         3.2600         3.2635       +0.11
  Yuan            6.0417         6.0434       +0.03
 
  Change so far in 2014
  Currency    Latest bid  End prev year    Pct Move
  Japan yen       103.27         105.28       +1.94
  Sing dlr        1.2670         1.2632       -0.30
  Taiwan dlr      30.023         29.950       -0.24
  Korean won     1058.20        1055.40       -0.26
  Baht             32.87          32.86       -0.03
  Peso             44.72          44.40       -0.73
  Rupiah        12045.00       12160.00       +0.95
  Rupee            61.52          61.80       +0.46
  Ringgit         3.2600         3.2755       +0.48
  Yuan            6.0417         6.0539       +0.20
 * Financial markets in India, Indonesia and Malaysia are closed
for a holiday.
- Reuters