The won rose the most in three weeks on speculation the currency’s slide to a four-week low prompted some South Korean exporters to convert overseas proceeds, while the yen retreated. Government bonds were unchanged.
India is using a surge in inflows into local bonds and equities to rebuild its currency reserves, boosting its ability to avoid a junk debt rating.
India’s rupee snapped a three-day decline after foreign investors pumped money into the nation’s assets as inflation eased to a 41-month low.
Indian bonds rose, pushing the 10- year yield to the lowest level since 2009, on speculation easing inflation will make room for the central bank to add to this year’s three interest-rate reductions.
China’s overnight money-market rate rose for a ninth day, the longest stretch since March, as the central bank drained funds from the financial system.
India’s rupee fell to an 11-week low on speculation importers stepped up dollar purchases to pay month-end bills.
Pacific Investment Management Co. is favoring local bonds in Brazil, Mexico and South Africa as emerging-market notes pay more than U.S. high-yield corporate debt for the first time in two years.
The won recovered from a four-week low after South Korea said it will act to curb currency swings amid renewed regional tensions as North Korea fired missiles. Government bonds declined.
Vietnam’s five-year bond yield fell to the lowest level since 2007 on speculation low funding costs are spurring demand for government securities. The dong dropped.
Taiwan’s dollar rose for the first time in four days as global funds added to their holdings of the island’s equities amid a government review on capital gains taxes. Bonds declined.