Report form Asia Currencies

The South Korean won rose to the strongest this year on signs growth in Asia is accelerating.

The currency has strengthened almost 1 percent in July as the central bank and government raised this year's growth forecasts. Vice Finance Minister Kim Seok Dong said today the government will stabilize the won when necessary. China's economy, South Korea's biggest export market, grew at the fastest pace in 12 years in the second quarter, a report today showed.

``It's a fairly optimistic growth picture in Korea, though gains in the won are going to be measured,'' said Emmanuel Ng, a currency strategist at Oversea-Chinese Banking Corp. in Singapore. ``The authorities are careful of won strength.''

The won gained as much as 0.2 percent to 914.70 and closed 0.01 percent stronger at 916.00 as of 3 p.m., according to Seoul Money Brokerage Services Ltd. It was last higher on Dec. 8.

Exports to China jumped 28.7 percent in the first 20 days of last month, a report showed July 2. Overall, goods sent overseas, which account for 40 percent of Korea's economy, rose 15.9 percent in June, beating the 12 percent median estimate in a Bloomberg News survey of 11 economists.

Malaysia's ringgit rose by the most in more than two weeks on speculation the central bank will announce measures to boost the foreign-exchange market. The bank said it was not aware of such plans.

Nothing To It

The ringgit reversed losses for the week to post the biggest climb in Asia. Malaysia scrapped a currency peg to the U.S. dollar in July 2005, while still keeping a September 1998 ban on offshore ringgit trading to deter currency speculators. The central bank doesn't know of plans to liberalize the ringgit, Deputy Governor Zamani Abdul Ghani told reporters today.

``Foreigners are buying the ringgit because there is market speculation there could be an announcement today,'' said Awaluddin Shariff, a currency trader at EON Bank Bhd. in Kuala Lumpur. ``There's nothing to it so far.''

The ringgit gained 0.4 percent to 3.4375, according to data compiled by Bloomberg.

The central bank in March allowed domestic banks to increase their foreign-currency trading business and allowed local fund managers to invest more overseas after the currency rose to the strongest in nine years.

Thai Limit Scrapped

The baht fell for a third day onshore, dropping 0.1 percent to 33.52 as central bank Governor Tarisa Watanagase said Thailand will scrap a limit on exporters holding foreign currencies.

``Exporters can hold their foreign currency as long as they have proof that they earned them from overseas sales,'' Tarisa told reporters at a press conference today. She said the limit on companies' foreign currency accounts would be lifted, without elaborating. Individuals would be allowed deposits of up to $100,000 or equivalent.

Elsewhere, the Philippine peso rose on speculation investors bought the currency to purchase stocks.

``Investors are going into stocks, buying initial public offerings, to a large extent on expectations of strong corporate earnings,'' said Marvin Fausto, who helps manage the equivalent of $3.7 billion of assets at Banco de Oro-EPCI Inc. in Manila.

The currency rose 0.5 percent to 45.00 against the dollar, according to Tullett Prebon Plc, the world's second-largest inter-dealer broker.

The Vietnam dong was at 16,130, close to the weakest in 14 years, the Singapore dollar strengthened 0.3 percent to S$1.5148 and the Indonesian rupiah was at 9,097.

The rupiah trading at 8,500 against the U.S. dollar would be ``too strong,'' said Vice President Jusuf Kalla today. Indonesia is ``comfortable'' with the rupiah in a range between 9,000 and 9,500 against the dollar, Kalla added.