SINGAPORE, Aug 11 — The South Korean won today slid to around the psychologically important 1,100 per dollar level as traders cited "heavy” intervention, while the Malaysia ringgit led losses among emerging Asian currencies on falling oil prices.

China’s yuan, however, was steady as the central bank set its daily guidance rate firmer on what is the first anniversary of its surprise devaluation of the currency.

Traders said South Korean foreign exchange authorities were spotted weakening the won "aggressively”, causing them to rush to unwind bets on further appreciation.

Yesterday,  according to the traders, authorities intervened and spent an estimated US$2 billion (RM8.021 billion) when the won hit a near 15-month high of 1,091.8.

"The authorities are seen trying to defend the critical point of 1,100 and slow down the won’s appreciation pace,” said Yuna Park, currency and bond analyst at Dongbu Securities in Seoul.

Before Wednesday, the won had been weaker than 1,100 to the dollar since late June 2015.

"But the trend of a stronger won remains intact as ample global liquidity is likely to keep seeking won-denominated assets, Park said. "The authorities are unlikely to reverse the direction.”

She said the won could strengthen to as firm as 1,060 in the second half.

Reflecting such expectations, the won pared some of earlier losses to return back to levels firmer than 1,100.

The South Korean currency was the second-best performing emerging Asian currency so far this year on sustained capital inflows.

Meanwhile, currency traders barely reacted to the South Korean central bank’s decision to keep interest rates unchanged.

Ringgit leads

The ringgit fell as slides in crude prices underscored the country’s oil and gas revenues.

Singapore’s dollar dipped as the city-state cut its economic growth forecast for this year, leaving the door open for additional policy stimulus.

Still, emerging Asian currencies are likely to resume strengthening, given easier global monetary policies, traders and analysts said.

The Malaysian currency pared some of losses as most government bond prices rose. Industrial production in June also grew faster than expected, government data showed.

"It’s better to put your bets for continued strength in Asian currencies, so I’d sell USD/MYR around 4.025 for 3.9850,” said a senior Malaysian bank trader in Kuala Lumpur.

"In a world where all major central banks are keeping low rates, money will flow to seek higher yields,” he said. — Reuters