South Korea's won rose, ending a two-day losing streak, on speculation an overnight tumble in oil prices will temper demand for dollars from refiners.

The won gained 3.3 percent in the past one month, the best performance among the 10 most-active Asian currencies outside of Japan, as policy makers vowed to use some of the nation's foreign-exchange reserves to strengthen the currency and curb inflation riding at a decade high.

``The big drop in oil prices is helping to thwart the bullish sentiment for the dollar,'' said Jay Won, a currency dealer with Korea Exchange Bank in Seoul. ``The market is going into a natural process of adjustment without the intervention.''

South Korea's currency rose 0.2 percent to 1,006.30 against the dollar at 9:16 a.m. in Seoul, compared with 1,008.20 yesterday, according to Seoul Money Brokerage Services Ltd. The won has slumped 7.4 percent this year.

The won will move between 1,000 and 1,010 today, Won said.

Oil fell $6.44, or 4.4 percent, to settle at $138.74 a barrel in New York yesterday. It was the biggest percentage drop since March and the largest price decline since Jan. 17, 1991.