SINGAPORE, Dec 16: There was little respite on Tuesday for Asian currencies as persistent dollar demand and dwindling trading volumes sparked fresh carnage in foreign exchange markets.

Only the South Korean won defied logic, surging nearly 14 per cent to highs of 1,375 against the dollar after the central bank decided late on Monday to scrap its 10 per cent trading band. Dealers said the won was benefitting from expectations of heavy dollar inflows under the IMF's $57 billion bailout scheme for South Korea, which had moved players to unwind long dollar positions built during the won's near 50 per cent drop last week to 40 per cent per annum from 25 per cent at present.

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