Won climbs to near 2007 high; baht drops

ASIAN CURRENCIES ROUND-UP

The South Korean won rose, approaching the highest this year, on signs that growth in Asia's third-largest economy is gathering pace.

The currency is the second-best performer in the region today as a report showed department store sales in June increased at the fastest pace in four months.

The won has also risen 0.9 this month as the central bank July 11 raised its 2007 economic growth forecast as exports surge and consumer spending rebounds.

The Thai baht dropped 0.3 per cent to 33.46 per dollar onshore as Thailand cut its benchmark interest rate for a fifth consecutive time this year to 3.25 percent.

The decision was expected by seven of 17 economists surveyed by Bloomberg News.

The won climbed 0.2 per cent to 916.10 per dollar at the 3 pm close of onshore trading, according to Seoul Money Brokerage Services Ltd. Onshore markets were shut yesterday for a holiday. It reached 915.60 on July 13, the strongest since December.

Elsewhere, most Asian currencies fell, led by the Indonesian rupiah, as higher crude oil prices fuelled speculation importers need more dollars to pay for purchases.

Indonesia rupiah
PT Pertamina, the state oil and gas company, said on June 12 it plans to import 4.5 million barrels of sweet crude oil for delivery this month.

Dollar "demand from corporates is probably very big because they have the obligation to make payments for imports,'' said Endarto Weltam, treasury manager at PT Bank Finconesia in Jakarta.

The rupiah declined 0.5 percent to 9,098 against the dollar, as predicted by Weltam.

Philippine peso
The Philippine peso dropped, snapping four days of gains, on speculation yesterday's rally to a seven-year high was excessive. The 14-day relative strength index against the dollar dropped to 32.9 yesterday, the lowest since June 5, when the currency slumped more than 1 percent in the following two days. A level below 30 signals a reversal is likely.

The ringgit weakened 0.2 percent to 3.4515 against the U.S. dollar. The Singapore dollar dropped 0.1 percent to S$1.5178, the Taiwan dollar was little changed at NT$32.821 and the Vietnam dong was steady at 16,137, the weakest in 14 years.