* Thailand reports third straight day of record virus deaths * Philippine peso strengthens from about 11-month lows * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E * Asian stock markets: https://tmsnrt.rs/2zpUAr4 By Soumyajit Saha July 2 (Reuters) - Thailand's baht hit a fresh 13-month low on Friday, while Indonesia's rupiah was rooted to a more than two-month low, weighed down by a surge in local coronavirus cases and a strengthening U.S. dollar. The baht weakened as much as 0.3% as Thailand reported a third straight day of record coronavirus deaths despite new curbs in parts of the country. "Tighter restrictions in Thailand continue proving to be a headwind, and we're now seeing foreign investors selling out of Thai assets," said Khoon Goh, head of Asia research at ANZ Banking Group (Singapore).
The Thai baht slid to its lowest in more than a year on Wednesday after the country's central bank promised to keep monetary policy loose and slashed its 2021 economic growth forecast, citing a hit to its tourism sector. The Bank of Thailand held interest rates steady at 0.5% and lowered growth forecasts for this year to 1.8%, versus the previous 3%, as Southeast Asia's second-largest economy reels from coronavirus-linked restrictions that have ravaged tourism. "The poor prospects for the economy mean that monetary policy will need to remain loose for a long time to come... the tourism sector remains on its knees," Gareth Leather, senior Asia economist at Capital Economics told clients.
The Philippine peso and the Thai baht offer a tale of contrasting fortunes, with one faring better than the other against a strong dollar.