Seoul: Asian currencies had their biggest weekly gain in almost two months as reports showed regional economies were improving and concern faded that Europe's debt crisis would worsen.
The South Korean won and the Philippine peso were the biggest gainers Friday after China affirmed its commitment to investing in Europe.
The Philippine economy grew at the fastest pace in three years in the first quarter and South Korean manufacturers' confidence reached close to a seven-year high.
"Markets are thinking they may have overpriced risks related to Europe," said Sebastien Barbe, head of emerging-market research for Credit Agricole CIB in Hong Kong.
The idea that the European crisis could derail the global recovery eased and "if this is the case, then there's no reason to sell stocks and currencies in Asia," he said.
The peso gained 0.6 per cent in the past week to 46.192 per dollar in Manila, according to Tullett Prebon. The Taiwan dollar climbed 0.2 per cent to NT$31.175, according to Taipei Forex. The won rose 2.4 per cent to 1,194.80 Saturday, leaving it little changed for the week, based on Seoul Money Brokerages Services prices.
Markets in Indonesia, Malaysia, Singapore and Thailand were shut for a holiday on Saturday.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region's 10 most-traded currencies excluding the yen, rose 0.5 per cent in the week, its most since the five days ended April 9.
