Baht stays put at 10-year high

ASIAN CURRENCIES ROUND-UP

Thailand's baht was little changed, holding at the highest in almost a decade, after the government said measures to ease currency gains aren't intended to curb overseas equity inflows. Government bonds fell.

The baht swung between gains and losses before Finance Minister Chalongphob Sussangkarn told reporters in Bangkok that the government plans to increase domestic borrowing to help ease pressure on the currency to strength. Officials will not impose new capital controls, he said.

The baht held at 33.33 per dollar in onshore trading as of 5:20 p.m. in Bangkok, from 33.34 yesterday, according to data compiled by Bloomberg. In the offshore market, the baht fell 0.2 percent to 30.80.

Peso Strengthens; Rupiah Declines
The Philippine peso rose as Finance Secretary Gary Teves said the nation will meet its budget deficit target.

The peso rebounded from yesterday's biggest drop in two weeks. The central bank unexpectedly cut its key interest rate for the first time in four years after the close of onshore peso trading. The peso advanced 0.5 percent to 45.975 against the dollar as of 4 p.m. in Manila, according to Tullett Prebon Plc, the world's second-largest inter-dealer broker.

Indonesian Rupiah
Indonesia's rupiah dropped for a second day after the government trimmed its inflation forecast, lifting the prospect for more reduction in borrowing costs. The rupiah fell 0.2 percent to 9,053, according to data compiled by Bloomberg.

Korean Won
South Korea's won had its highest close in a week after the central bank raised interest rates and said higher borrowing costs will be ``supportive'' of the nation's economic recovery. Bonds fell.

"Better economic growth is good for the won in the longer term,'' said Jo Hyun Suk, a trader in Seoul at Korea Exchange Bank, the nation's fifth-biggest lender.

The won rose 0.1 percent to 918.30 from 919.20 yesterday, its strongest close since July 3, according to Seoul Money Brokerage Services Ltd. The currency touched 916.90, the strongest since Dec. 8. It's climbed 1.2 percent this year.

The won is the second-best performing of the 10 most-active currencies in Asia today after the Bank of Korea boosted the overnight call rate by a quarter-percentage point to 4.75 percent, the highest since August 2001.

Taiwan Dollar
Taiwan's dollar fell on speculation investors are shifting funds into higher-yielding assets overseas.

Taiwan's dollar fell 0.2 percent to NT$32.793, according to Taipei Forex Inc. It may drop to NT$32.80 this week, Hayashi said.

Elsewhere in Asia, Thailand's baht rose 0.2 percent to 30.70 in offshore trading and was little changed at 33.33 onshore. The Singapore dollar was little changed at S$1.5160 and Malaysia's ringgit held at 3.4515.