But the yen rode on the risk aversion, hitting a nine-month high against euro on unwinding of carry trades after US President Barack Obama proposed new plans to restrict bank investments. Obama said he is ready to fight the financial sector and its lobbyists for rules that would bar banks from owning, sponsoring or investing in hedge funds or private equity funds for their own profit, causing a bank share sell-off.
WON The spot won tumbled as much as 1.5 percent to 1,154.9 per dollar after breaking support at 1,150. It later stabilised near 1,151, while the one-month Dollar/won non-deliverable forwards hit their highest this year. The NDFs jumped across the curve as hedge funds and banks scrambled to cut losses.
"Blood everywhere last night," says a Singapore-based NDF trader. "All stop-losses were triggered and sent 1-month NDFs to the high of 1,155.5 after breaking 1,150." The chart points to further weakness in the spot won, which may fall to 1,160 in the near term.
RUPIAH The high-yielding rupiah briefly hit a session low of 9,400 per dollar. Traders spotted dollar-selling intervention by the authorities to support the local currency. The rupiah later recovered to 9,350, still down almost 0.8 percent from Thursday's close.
"Dollar/rupiah traded as high as 9,400 before BI agents stepped in," said a Jakarta-based trader, referring to state banks selling dollars on behalf of the central bank. One-month dollar/rupiah NDFs rose 9,445 after opening at 9,385. Traders expect further weakness in the rupiah, which has fallen 2 percent in the past week.
PESO The peso shed 0.7 percent to 46.32 per dollar, its lowest since late December, as investors covered short dollar positions. "China's tightening measures and Obama's risk-taking tax on banks is dampening investor sentiment currently, and everyone's liquidating positions till this all blows over," said a Manila-based dealer.
But the peso was likely supported by the 55-day moving average at 46.30. Meanwhile, dollar/peso offshore NDFs gained across the curve, with one-month contracts rising to 46.45 from Thursday's close at 46.30.