July 2 (Bloomberg) -- Taiwan’s dollar and South Korea’s won weakened, leading losses in Asian currencies, on speculation their central banks will use intervention to prevent appreciation that may prolong export slumps. Taiwan’s currency fell the most in a month, after earlier reaching its strongest level in three weeks against the greenback. The won earlier touched a two-week high before closing lower. The U.S. dollar strengthened against 13 of the world’s 16 most-used currencies after a Chinese foreign ministry official said he was “not aware” of any plan to discuss a new reserve currency at next weeks’ Group of Eight meeting. “We have seen the central bank trying to temper the rise in the Taiwan dollar,” said Maya Pinto, an economist at IDEAglobal in Singapore. “They’re concerned about the competitiveness of their exports given that external demand remains weak.” The Taiwan dollar fell 0.5 percent to NT$32.947 at the 4 p.m. close, the biggest slide since June 2, according to Taipei Forex Inc. The won weakened 0.2 percent to 1,269.50, having earlier advanced as much as 0.8 percent, and the Malaysian ringgit was little changed at 3.5200. India’s rupee snapped a four-day gain, easing 0.1 percent to 47.945. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, fell 0.3 percent. Export Support Korea’s currency climbed 8.6 percent in the three months through June 30, its best quarterly performance since 2004. The nation’s exports last month fell 11 percent from a year earlier, marking an eighth straight drop. “We expect the Bank of Korea to buy dollars to counter won appreciation pressure,” said Tim Condon, ING Groep NV’s Singapore-based head of Asia research. “The central bank, like its Asian counterparts, prefers a weaker currency to a stronger one for the benefit of exporters.” Currencies including the Philippine peso and Singapore dollar weakened after Chinese Vice Foreign Minister He Yafei said he hopes the greenback will “remain stable.” The official said he was “not aware” of his government seeking to discuss the dollar’s replacement as the global reserve currency at the G-8 meeting. The dollar weakened against the euro yesterday after Reuters reported on its Web site, citing unidentified sources, that China asked to debate the idea at the summit. Dollar’s Status “The market has gone ahead of itself with the idea that the dollar’s role as the reserve currency is weakening even if this is not imminent,” said Suresh Kumar Ramanathan, a currency strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. The dollar rose 0.4 percent to $1.4090 per euro, having yesterday in New York reached a three-week low of $1.4201. The greenback was at 96.61 yen, up from today’s low of 96.38. The Philippine peso earlier reached 48 per dollar, the strongest level since June 16, on speculation overseas workers will send more funds home this year. The central bank said its projection for remittances to be little changed in 2009 is “turning out to be relatively conservative.” “Any growth in remittances, even if it is minimal, will still add to the supply of dollars,” said Ed Garcia, a currency trader at East West Banking Corp. in Manila. The peso closed at 48.16 per dollar, from 48.12 yesterday. Elsewhere, India’s rupee fell 0.2 percent to 48 versus the greenback and the Singapore dollar fell by a similar proportion to S$1.4499. Thailand’s baht traded at 34.07, versus 34.06 yesterday, and the Chinese yuan was little changed at 6.8314.

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