Emerging Asian currencies are set to consolidate for now after ticking sharply upward on news from Brussels that European leaders will recapitalize Spanish banks and make bailout funds more widely available, says a Singapore-based trader with a foreign bank. They could see more gains, however, if London traders decide to take the EUR higher later Friday, he says. "Because the market was positioned quite risk-off, the news caught some by surprise and that led to a lot of unwinding," the trader adds. He says the SGD and KRW will be most directly affected by developments in Europe. The USD/SGD is at 1.2730, from 1.2785 before the EU announcement.
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