* 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."
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.
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
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