SINGAPORE, Feb. 11 (Reuters) — Asian currencies pushed higher against the US dollar on Wednesday on growing speculation that central banks may have less resistance to exchange rate strength.
Dealers said that while the presence of central banks was being felt across the region, there was a growing feeling that the gradual gains this week showed they were smoothing the rise rather than defending levels.
The Singapore dollar rose past the 1.6700 per dollar level to briefly touch a new four-year high of 1.6690. It pulled back to 1.6720 at the first sight of strong US dollar bids from local banks, which sparked talk the central bank was in the market.
The Taiwan dollar hit a fresh 18month high of 33.121 per dollar, despite concerns about possible intervention.
The South Korean won extended its four-month highs to 1,610.6 per dollar, even as a finance ministry official said authorities were concerned about "excessive" volatility in exchange rates and planned to take action if necessary.
