Asian currencies gained, led by Malaysia’s ringgit and the Singapore dollar, after data showing global economic growth is intact boosted the region’s export outlook. Chinese industrial production rose 13.3 percent last month, compared with the 13.1 percent median estimate of economists surveyed by Bloomberg. U.S. retail sales were better than analysts expected, while South Korea’s jobless rate dropped to a six-month low. “Data confirming China’s economy remains solid is positive for Asia’s exports while any better data from the U.S. would improve investor sentiment,” said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. The ringgit strengthened 0.1 percent to 3.0285 per dollar as of 10:37 a.m. in Kuala Lumpur. Singapore’s dollar gained 0.1 percent to S$1.2314 and Taiwan’s dollar advanced 0.1 percent to NT$28.824. The Commerce Department in Washington yesterday reported sales at retailers fell 0.2 percent in May, less than the 0.5 percent decline forecast in a Bloomberg survey, indicating consumers are weathering higher gasoline costs. South Korea’s unemployment rate fell to 3.3 percent in May from 3.6 percent the previous month as more workers were taken on by the manufacturing, healthcare and welfare services sectors, official data showed today. “There’s room for one more rate hike across Asia in the short term given the inflation pressure, which should support currencies,” said Suresh Kumar Ramanathan, a foreign-exchange strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. Rates Speculation China increased the reserve-requirement ratio for banks yesterday. The People’s Bank of China lifted the amount of cash the biggest lenders must set aside yesterday by half a percentage point to a record 21.5 percent effective June 20. Consumer prices rose 5.5 percent in May from a year earlier, the most in almost three years, data showed yesterday. The yuan strengthened 0.02 percent to 6.4792 per dollar. The Chinese reserves increase spurred speculation that Taiwan’s central bank will boost interest rates when it meets on June 30. Inflation quickened to 1.66 percent last month, the fastest pace since February 2010, data showed June 7. “China’s tightening move supports the idea Taiwan will raise rates to rein in prices,” said Henry Lin, a Taipei-based foreign-exchange trader at Taiwan Shin Kong Commercial Bank. “That supports the Taiwan dollar.” The ringgit rose for a second day on speculation the central bank will raise borrowing costs further. Bank Negara Malaysia raised its overnight policy rate to 3 percent from 2.75 percent on May 5, saying growth is firmly on a steady path. Policy makers next meet on July 7. Inflation accelerated to 3.2 percent in April from a year earlier, the fastest since March 2009, following increases in retail fuel and sugar prices. Elsewhere, the Philippine peso declined 0.1 percent to 43.393 per dollar. Thailand’s baht and Indonesia’s rupiah were little changed at 30.45 and 8,535, respectively. South Korea’s won was little changed at 1,083.05. 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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