EM ASIA FX-U.S. debt deal hopes lift Asia FX; won hits 9-mth high

Reuters

* Won rises on offshore funds bids, stop-loss dlr selling

* Taiwan dlr gains on stock inflows

(Adds text, updates prices)

By Jongwoo Cheon

SEOUL, Oct 15 (Reuters) - The South Korean won hit a near

nine-month high on Tuesday as most emerging Asian currencies

rose on growing hopes for a deal to reopen the U.S. government

and avert a possible debt default.

China's yuan hit a record high for a second

consecutive session, supporting regional peers.

The won rose as investors rushed to cover short

positions and on sustained stock inflows, although caution over

intervention capped its upside, traders said.

The Taiwan dollar gained on demand linked to

foreign investors' stock purchases.

The Thai baht also advanced, although most other

Southeast Asian currencies have not benefited much yet with

local financial markets closed for holidays.

Asian shares touched a near five-month peak as top U.S.

senators signalled they could soon reach a bipartisan deal to

resume the government operations and avoid a default despite

concerns over further political bickering.

"It is getting priced into markets that there will be no

default," said Jeong My-young, Samsung Futures research head in

Seoul. "The won is likely to test this year's high and other

Asian currencies may appreciate too."

WON

The won rose as much as 0.4 percent to 1,067.0 per dollar,

its strongest since Jan 24 on demand from offshore funds and

stop-loss dollar selling, traders said.

Foreign investors extended a buying spree in Seoul's main

stock market to a 33rd consecutive session.

In technical analysis terms, the won has room to head to a

minor resistance of 1,066.3, its low on Jan 2, and eventually

this year's high of 1,054.5, analysts said.

Still, apprehension grew over possible intervention by South

Korea's foreign exchange authorities to stem the won's strength.

The won is technically seen overbought with the 14-day

dollar/won's relative strength index below the 30 threshold,

which indicates the dollar is oversold.

TAIWAN DOLLAR

The Taiwan dollar rose on stock inflows and as strength in

the won and the yuan provided more support.

Local importers bought the U.S. dollar for payments below

29.400, limiting the island currency's upside, traders said.

Investors also stayed wary of potential intervention by the

central bank.

The Taiwan dollar is seen facing resistance at 29.300 to the

greenback, traders added.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0500 GMT

Currency Latest bid Previous day Pct Move

Japan yen 98.46 98.59 +0.13

*Sing dlr 1.2423 1.2438 +0.12

Taiwan dlr 29.360 29.495 +0.46

Korean won 1067.55 1071.50 +0.37

Baht 31.26 31.32 +0.19

*Peso 43.15 43.15 +0.00

*Rupiah 11360.00 11355.00 -0.04

Rupee 61.64 61.55 -0.15

*Ringgit 3.1800 3.1805 +0.02

Yuan 6.1042 6.1079 +0.06

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 98.46 86.79 -11.85

Sing dlr 1.2423 1.2219 -1.64

Taiwan dlr 29.360 29.136 -0.76

Korean won 1067.55 1070.60 +0.29

Baht 31.26 30.61 -2.08

Peso 43.15 41.05 -4.87

Rupiah 11360.00 9630.00 -15.23

Rupee 61.64 54.99 -10.79

Ringgit 3.1800 3.0580 -3.84

Yuan 6.1042 6.2303 +2.07

* Financial markets in Indonesia, Malaysia, Philippines and

Singapore are closed for holidays.

(Additional reporting by Roger Tung in TAIPEI; Editing by Eric

Meijer)

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