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 rose for a fifth week, the longest winning streak since April 2011, as Indonesia’s improving economy lured foreign funds to the nation’s assets.
U.S. retail sales probably rose in February as consumer spending stabilized, data in the coming week may show.
Indonesia’s rupiah advanced to a 16- week high after overseas investors pumped money into the nation’s assets on improving economic fundamentals.
Indonesia’s 10-year bonds rose for a seventh day after inflation slowed and the cost to insure the nation’s debt against default dropped to the least since June.
Indonesia’s rupiah dropped by the most in two weeks after the January trade balance unexpectedly swung into deficit, complicating government efforts to trim the current-account shortfall.
Indonesia plans to woo companies from Japan to Europe as political turmoil in Thailand and rising wages in Malaysia boost the attractiveness of Southeast Asia’s biggest economy.
Indonesia’s bonds advanced, pushing the 10-year yield to a four-month low, before data forecast to show inflation slowed for the first time since September.
Indonesia’s rupiah had its best monthly gain in almost five years as a narrower current-account deficit spurred buying of the nation’s assets.
Indonesian central bank Governor Agus Martowardojo said the rupiah probably will trade around current levels and gains will be limited.