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Ringgit and Singapore dollar advance to decade highs

Asian currencies completed a weekly advance, with Malaysia's ringgit and Singapore's dollar reaching decade highs, as US interest rate cuts and spending plans revived confidence in global economic growth.

The Indonesian rupiah, the Philippine peso and the South Korean won all rebounded from last week's losses after US lawmakers approved tax rebates for 117 million US families, two days after the Federal Reserve's emergency rate cut. Malaysia's ringgit rose on Friday to the strongest since November 1997 on speculation the central bank will allow faster gains to curb inflation.

"Risk aversion is temporarily on the backburner," said Marcelo Ayes, senior vice president for treasury at Rizal Commercial Banking Corp in Manila. "There's also the backdrop of a weak dollar."

The ringgit traded at 3.2405 per US dollar in Kuala Lumpur, compared with 3.27 a week ago, data compiled by Bloomberg show. The Indonesian rupiah added 1.2 percent this week to 9,328, its sharpest weekly gain since September.

The New Taiwan dollar gained ground against the US currency on Friday, climbing NT$0.052 to close at NT$32.300. A total of US$932 million changed hands during the day's trading.

South Korea's won gained after the economy expanded more than analysts forecast in the fourth quarter, helped by the biggest increase in exports in four years. Malaysian inflation quickened 2.4 percent last month, the statistics department said this week.

Singapore's dollar climbed 1 percent this week to S$1.4218. The Monetary Authority of Singapore said in its semi-annual policy review in October that it would allow "slightly" faster appreciation in the city-state's dollar. The government reported this week that inflation last month was the highest since 1982.

The won advanced as accelerating growth may give investors more confidence to put money into South Korean assets and the currency. GDP rose 1.5 percent from the third quarter, when it climbed 1.3 percent, the central bank said on Friday.

The currency closed at 946.60 against the US dollar, against 942.80 a week ago, Seoul Money Brokerage Services Ltd said.

The Philippine peso gained 0.9 percent 40.815 per dollar, data compiled by Bloomberg show.

Elsewhere, the Vietnamese dong was little changed at 15,981 and Thailand's baht lost 0.1 percent to 33.05 onshore.
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