Baht advances; Taiwan dollar dips

ASIAN CURRENCIES ROUND-UP

Thailand's baht gained, heading for the highest close in almost a decade in onshore and offshore markets, as global funds bought more of the nation's equities.

The currency also gained as companies convert overseas earnings to take advantage of its appreciation. Prime Minister Surayud Chulanont today said the government is trying to stabilize the baht to help exporters.

It has stopped short of tightening curbs on foreign investment, which created the dual exchange rate system when they were introduced in December.

The baht advanced 0.2 percent to 33.26 per dollar in onshore trading as of 4:10 p.m. in Bangkok, according to data compiled by Bloomberg. It headed for its highest close since August 1997.

Taiwan Dollar
The Taiwan dollar dropped on speculation importers increased demand for the US currency to protect earnings from a rise in crude oil prices to an 11-month high.

Taiwan's dollar has weakened 0.7 percent this year, the worst performer among the 10 most-active Asian currencies, amid a 21 percent jump in the price of oil. Taiwan imports almost all of its crude, which is priced in U.S. dollars.

The local currency fell 0.1 percent to NT$32.808 per U.S. dollar, compared with N$32.762 on July 13, according to Taipei Forex Inc.

Korean Won
A stronger won reduces the foreign-exchange earnings Korean exporters get from their dollar revenue. Finance Minister Kwon Okyu on July 9 said authorities will ``actively respond'' to gains in the won when necessary.

The won fell 0.2 percent to 918.30 from 916.90 on July 13, the highest close since Dec. 7, according to Seoul Money Brokerage Services Ltd. The central bank may sell the currency should it rise past 915, Park said.

Indonesian Rupiah
The Indonesian rupiah fell on speculation the central bank will cut interest rates further this year, damping the appeal of keeping money in the nation.

The currency fell 0.2 percent to 9,044, according to data compiled by Bloomberg. The rupiah is the third-worst performer of Asia's 10 most-active currencies this year, dropping 0.5 percent. It may weaken to 9,060, Gunandar said.

Elsewhere in Asia, the Singapore dollar dropped 0.1 percent to S$1.5164. The Malaysian ringgit was little changed at 3.44 and the Vietnamese dong held at 16,130. The Philippine peso rose 0.5 percent to 45.55, its highest close since Sept. 11, 2000, according to Tullett Prebon Plc, the world's second-largest inter-dealer broker.