SINGAPORE -- The South Korean won led losses among Asian currencies on Friday with investors increasingly worried by intensifying inflationary pressures in the region.

Regional currencies were also weighed down by a broadly stronger US dollar, which extended gains against major currencies on Friday after US payroll data the previous day came in close to expectations.

The South Korean won fell by half a percent to 1,050.4 per dollar, pressured by worries soaring oil prices which hit a record high near $146 per barrel on Thursday, will hit growth and drive up inflation.

"The fundamentals itself strongly support a weaker won -- high oil prices, inflation, deficit in the trade balance, lower stock prices - but the government is trying its best to contain inflation by intervening," said Seoul-based trader Nam Kyu Kim at ING.

Traders said they had been on the look-out for currency intervention by the Korean authorities, as they suspected the central bank had sold dollars to support the won earlier this week.

The Singapore dollar and Thai baht fell by at least 0.3 percent each, and traders said this weakness tracked the euro's decline against the stronger US dollar.

PESO PARES SOME LOSSES

The peso initially inched down by 0.4 percent to 45.7 against the dollar, its weakest since September 19 last year, but later steadied around 45.5 as investors paused in peso sales and traders reported intervention by the central bank.

"Probably (the) market took a breather for now, considering the dollar/peso closed higher for five consecutive days. But I think overall the market is still bullish (on the) dollar," said a Manila-based trader.

Traders said they suspected the Philippines central bank had sold dollars to support the struggling currency in early trading, first at levels of 45.7-per-dollar and later at 45.52, as concerns over rising food and oil prices weighed on the currency.

"We expect to see a further rate hike of at least another five basis points at the next meeting and other possible tightening measures such as an expansion of access to its special deposit accounts," Goldman Sachs economists Mark Tan and Michael Buchanan said in a research note.

Philippine annual consumer inflation in June rose to 11.4 percent, its highest level since May 1994. The central bank said on Friday that inflationary pressures would moderate as monetary policy is tightened, signalling it would raise interest rates at its July 17 policy-setting meeting.

"Inflation has eroded the real interest rate cover for the peso and we think the trend is your friend. We expect the dollar/peso to hit 46.0 in the third quarter," ING said in a note.

In contrast,, the Indian rupee inched up by a quarter of a percent to 43.18 per dollar while shares on the national stock exchange climbed by more than 2.0 percent.

However, further gains were capped by increasing inflationary risks as India's wholesale price index rose 11.63 percent in the year to June 21, up from an annual figure of 11.42 percent the previous week.

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