Yuan up on move to curb inflation

ASIAN CURRENCIES ROUND-UP

The yuan rose, snapping a three-day loss, as the dollar fell and on speculation China will accelerate the pace of its currency's appreciation to cool inflation. Bonds rose.

A stronger yuan, up more than 2 per cent this year, may help quell price rises at an 11-year high as the nation's worst snowstorms in five decades pushed up costs. Faster gains in the currency, also known as the renminbi, may lower the prices of imported goods as oil and other commodities rallied to records.

The yuan rose 0.22 per cent to 7.1420 per dollar as of 5:30 p.m. in Shanghai, from 7.1580 yesterday, according to China Foreign Exchange Trade System. China's currency rose about 7 per cent in 2007.

Asian currencies rose on speculation interest-rate cuts in the US will encourage investors to seek higher-yielding assets in the region. Taiwan's dollar climbed to a three-year high.

The Singapore dollar and the Malaysian ringgit reached the strongest levels since 1997 as their central banks allow gains to help curb inflation fueled by a rise in commodity prices.

The dollar fell against all 16 of the world's major currencies as Federal Reserve Chairman Ben S Bernanke may indicate today he'll cut borrowing costs to revive US growth.

The Taiwan dollar advanced to NT$30.903 against the US currency, the strongest since March 2005, and rose 0.9 per cent from yesterday to NT$30.929 at the 4 p.m. close in Taipei, according to Taipei Forex Inc. The Malaysian ringgit strengthened 0.3 per cent to 3.2025 after touching 3.2021, the highest level since November 1997.

South Korea's won appreciated 0.7 per cent to 941, the biggest gain since November 30, according to Seoul Money Brokerage Services. The won may rise to 940 by the end of March and 900 by December 31, Yamamoto said.