Thai Baht, Singapore dollar rise; S. Korean won declines<\/p>\n
Bloomberg
\nSingapore<\/p>\n
The Thai baht and Singapore dollar rose after crude-oil prices
\nfell from a record high, easing concern that growth in regional
\nprofits and economies will slow.<\/p>\n
Asian currencies fell in the past six months against the
\ndollar, partly as importers sold more of their currencies to pay
\nfor oil, denominated in U.S. dollars. The region buys almost a
\nthird of the world's supply of crude.<\/p>\n
\"If oil prices are retreating, and the move down is considered
\nsubstantive, it should provide relief for Asian currencies,\" said
\nPhilip Wee, an analyst in Singapore at DBS Group Holdings,
\nSoutheast Asia's biggest lender.<\/p>\n
The baht gained 0.2 percent to 41.49 against the dollar as of
\n9:07 a.m. Bangkok time, and the Singapore dollar rose 0.1 percent
\nto S$1.6919. Indonesia's rupiah traded at 9,174. The Taiwan
\ndollar was little changed at NT$33.99, according to Taipei Forex
\nInc.<\/p>\n
The Asia-Pacific region bought 29 percent of the world's crude
\noil last year, according to BP Plc, Europe's largest petroleum
\ncompany.<\/p>\n
Crude oil for November delivery fell for a second day, sliding
\nas much as 0.5 percent to $49.26 a barrel. The decline cut this
\nyear's price gain to 51.8 percent.<\/p>\n
The International Monetary Fund yesterday said in a report
\nthat it cut its 2005 forecasts for Asia's emerging economies,
\npartly because of higher oil prices.<\/p>\n
Korean Importers<\/p>\n
The region may grow 6.5 percent next year, less than the 6.8
\npercent expansion forecast in April, the Washington-based lender
\nsaid in its World Economic Outlook. The IMF raised its forecast
\nfor growth this year to 7.3 percent from 7.2 percent.<\/p>\n
In South Korea, the won fell on speculation importers will
\ntoday buy more dollars to pay for costlier oil after financial
\nmarkets were closed for a three-day holiday that ended yesterday.<\/p>\n
\"Importers need to buy more dollars to pay for the higher
\npriced oil,\" weakening the won, said Chang Yong Han, a currency
\ntrader at Koram Bank in Seoul.<\/p>\n
The won traded at 1,153.80 against the dollar from 1,149.40 on
\nSept. 24, according to Seoul Money Brokerage Services Ltd.<\/p>\n
Koram, which was purchased by Citigroup Inc. in May, will be
\nrenamed Citibank Korea Inc., the Korean bank said on Sept. 8 in a
\nstatement.<\/p>\n
Steven Chang, vice president of global markets at State Street
\nBank & Trust Co. in Hong Kong, said he may buy currencies such as
\nthe Australian dollar against Asian counterparts.<\/p>\n
Australia's currency may extend the 1.6 percent gain in the
\npast month against the U.S. dollar as prices of commodities such
\nas copper and gold rise, raising exporters' revenue prospects.
\nExports account for a fifth of the Australian economy and raw
\nmaterials make up two-thirds of overseas shipments.<\/p>\n
Copper prices in New York rose to the highest in almost seven
\nmonths. Gold futures traded near a five-week closing high.<\/p>\n
Still, most Asian currencies strengthened today after a report
\nshowed U.S. oil inventories unexpectedly rose last week.<\/p>\n
The Philippine peso traded at 56.27 from yesterday's 56.315,
\naccording to Bankers Association of the Philippines.<\/p>\n
The peso may gain to \"better than 56\" against the dollar
\nstarting in October, boosted by demand from families of overseas
\nFilipino workers, central bank Deputy Governor Amando Tetangco on
\nSept. 28 said in a mobile-phone text message from Manila.<\/p>\n
Nestor Espenilla, assistant central bank governor, told
\nreporters in London on Sept. 27 that the bank may seek to \"smooth
\nout disturbances in the market\" by buying pesos.<\/p>\n
A falling currency becomes a concern if it stokes inflation
\nthrough higher import prices, the central bank's Espenilla said.<\/p>\n
It's also a \"worry\" for the government because it increases
\nthe foreign-debt burden, Finance Secretary Juanita Amatong said
\non the same day.<\/p>\n
\"I won't be surprised\" if the central bank bought pesos, DBS's
\nWee said. \"It's in their interest to cap the peso's decline.<\/p>",
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