India’s rupee surged to a five-week high and stocks and government bonds rose as an exit poll showed the nation’s main opposition party is set to win four of five state elections before a national vote next year.
Indonesia’s rupiah slid to the lowest level in more than four years on speculation companies are boosting dollar purchases to make year-end payments, even as the central bank said the currency is “undervalued.”
South Korea’s bonds fell, pushing the five-year yield to the highest level since June, as foreign investors cut holdings of local stocks in preparation for a reduction in stimulus by the Federal Reserve.
Bank of Canada Governor Stephen Poloz kept his main interest rate unchanged and said the risks of inflation staying below target “appear to be greater” in an economy that’s two years away from reaching full output.
The Bank of Japan’s unprecedented monetary easing will fail in its goal of spurring 2 percent inflation, according to Takahiro Mitani, president of the fund that manages the world’s largest pool of pension savings.