ian currencies completed a weekly loss, led by South Korea’s won and India’s rupee, as concern Europe’s debt crisis will worsen bolstered demand for dollars. The won dropped to a three-week low after Bank of Korea unexpectedly left interest rates unchanged today. The yuan had its sharpest weekly decline in two months as China raised lenders’ reserve-requirement ratios for the fifth time this year and government data showed industrial output moderated in April. The MSCI Asia Pacific Index of regional stocks was headed for a weekly loss on concern global economic growth will slow. “This week there was a commodity sell-off and concern on Greece’s debt crisis,” said Joanna Tan, a Singapore-based regional economist at Forecast Singapore Pte. “The underlying sentiment in Asian currencies is caution with Europe’s problems still ongoing and worries about commodities.” The won declined 0.3 percent for the week to 1,086.80 per dollar as of the 3 p.m. close in Seoul, according to data compiled by Bloomberg. The rupee fell 0.2 percent to 44.865, Singapore’s dollar dropped 0.3 percent to S$1.2391 and the yuan retreated 0.06 percent to 6.4977. Euro-region finance ministers will meet next week to discuss more support for Greece, Luxembourg’s Jean-Claude Juncker, who leads the group, said yesterday. The nation has already been granted a 110 billion-euro ($158 billion) bailout, while Ireland and Portugal have also received financial aid from the European Union. Greek Risk Remains “The Greece situation remains a big risk in the background,” said Nik M. Khairul, a treasury dealer at Asian Finance Bank Bhd. in Kuala Lumpur. “Commodity prices and China’s economic activity are pointing down, which creates question marks on future rate increases in Asia.” The Bank of Korea kept its seven-day repurchase rate at 3 percent, a move predicted by two of 14 economists surveyed by Bloomberg. Twelve forecast a quarter of a percentage point rise to curb inflation. Bank Indonesia kept its benchmark rate at 6.75 percent yesterday, a decision predicted by all 10 economists in a Bloomberg survey. “Expectations for a rate increase had been limiting declines in the won this week,” said Yun Se Min, a currency dealer at Busan Bank in Seoul. The currency closed 0.2 percent weaker today after earlier dropping as much as 0.7 percent. Thailand’s baht rose 0.1 percent this week and 0.4 percent today. The currency rebounded from its biggest one-day decline in four months yesterday after Fitch Ratings raised the outlook on Thailand’s local-currency credit rating to stable from negative, citing an earlier-than-expected stabilization of the nation’s finances. Elsewhere, the Philippine peso declined 0.1 percent this week to 43.14 per dollar. Taiwan’s dollar and Malaysia’s ringgit were little changed at NT$28.788 and 3.0013, respectively. Indonesia’s rupiah gained 0.4 percent to 8,543, while Vietnam’s dong was little changed at 20,570. To contact the reporter on this story: Khalid Qayum in Singapore at kqayum@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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