Asian currencies declined, led by Malaysia’s ringgit and Singapore’s dollar, as regional stocks fell on concern U.S. economic growth is cooling. The MSCI Asia-Pacific Index of regional stocks slid after reports from the U.S. yesterday showed service industries expanded at the slowest pace in eight months and companies added fewer jobs that forecast. Malaysia will leave borrowing costs unchanged today, while the Philippines will raise interest rates by a quarter of a percentage point, according to economists surveyed by Bloomberg. “Global risk sentiment is being driven by recent economic data that may favor safe-haven currencies in the very short term,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore. “Asian currency markets may consolidate in a tight range ahead of non-farm payrolls data tomorrow.” The ringgit weakened 0.3 percent to 2.9848 per dollar as of 10:30 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. Singapore’s dollar dropped 0.2 percent to S$1.2306, Indonesia’s rupiah fell 0.1 percent to 8,565 and the Philippine peso retreated 0.1 percent to 42.923. The ringgit declined for a third day, its longest losing streak in a year. Bank Negara will keep its overnight policy rate at 2.75 percent, according to nine of 16 economists surveyed by Bloomberg, while seven predict an increase to 3 percent. ‘If the U.S. recovery is deemed to be somewhat derailed momentarily, it could support a case for a hold on interest rates,” Saktiandi said. “We see a higher probability of an increase in the second half” in Malaysia, he said. Philippine Inflation The Philippines peso fell as a government report showed inflation accelerated at the fastest pace in two years in April. Consumer prices increased 4.5 percent from a year earlier, after a 4.3 percent gain in March. The median estimate in a Bloomberg News survey was for a 4.4 percent gain. Bangko Sentral ng Pilipinas will increase its benchmark rate by a quarter of a percentage point to 4.50 percent, according to 12 of 16 economists polled by Bloomberg. Three expect no change and one forecasts a 50 basis point, or half a percentage point, rise. “The market may be pricing in uncertainty on inflation,” said Lito Biacora, vice president for treasury at Bank of the Philippine Islands in Manila. “The weakness in the U.S. economy and correction in the equities market” are driving the peso lower, he said. Indonesian Rate Decision The rupiah dropped before a government report today that will show a 6.58 percent rise in first-quarter gross domestic product from a year earlier, compared with a 6.89 percent gain in the three months through December, according to the median estimate in a Bloomberg survey. Bank Indonesia will leave its policy rate at 6.75 percent next week, according to all eight economists surveyed by Bloomberg. “The rupiah’s weakening is driven by external factors,” said Gundy Cahyadi, a Singapore-based economist at Oversea- Chinese Banking Corp. “As long as the GDP numbers come in above 6 percent, there will be positive momentum for the economy.” Elsewhere, Taiwan’s dollar rose 0.3 percent NT$28.583 against its U.S. counterpart, according to Taipei Forex Inc. China’s yuan weakened 0.04 percent to 6.4961. Financial markets in South Korea and Thailand are closed for a holiday today. To contact the reporter on this story: Khalid Qayum in Singapore at kqayum@bloomberg.net David Yong in Singapore at dyong@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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