Asian currencies had the best week since September 2012, led by Indonesia’s rupiah and India’s rupee, as signs the U.S. economic recovery is losing pace fueled speculation the Federal Reserve will slow further stimulus cuts.
The rupiah fell after Bank Indonesia said the tender will stabilize after rallying this year, and before data that some analysts are expecting will show the trade balance swung to a shortfall in January.
Indonesia kept its key interest rate unchanged for a third straight meeting as a narrowing current- account deficit and slowing inflation reduced the need for tighter monetary policy. The rupiah rose the most in a month.
Indonesia’s rupiah forwards were set for their best week in four on optimism the current-account deficit will narrow after the country recorded the largest trade surplus in two years and international reserves climbed.