The won approached a two-year high as global investors bought South Korean shares before a Federal Reserve report that may detail reasons for maintaining stimulus that has fueled demand for emerging-market assets. Bonds rose.
The euro, which reached a two-year high versus the dollar this month, is poised to extend its gains as the European Central Bank’s audit of the region’s financial system encourages lenders to repatriate overseas assets.
Investors have begun to flee the euro in preference for the U.S. dollar amid fears that the European debt crisis may worsen, Morgan Stanley’s Global Head of Foreign Exchange Hans Redeker said in an interview in the Handelsblatt.
Volatility in India’s rupee fell to a two-month low on speculation a U.S. budget impasse that weighed on the world’s largest economy will prompt the Federal Reserve to prolong stimulus that’s buoyed emerging markets.
Hans Redeker , who was hired as Morgan Stanley’s head of foreign-exchange strategy in March, said he plans to revise the bank’s euro forecast “substantially lower” on weak demand for European bonds and equities.