China should rein in yuan intervention and let the currency advance to curb growth in its $3.95 trillion foreign-exchange reserves, according to a former central bank adviser and the nation’s biggest investment bank.
Asian currencies recorded their first weekly loss in almost a month as conflict in Ukraine and a strengthening U.S. economy spurred demand for dollars.
The cost of locking in China’s interest rates for a year fell this week by the most since June after the government announced plans to cut reserve requirements for some rural banks.
China’s yuan traded within 0.1 percent of this month’s low after the central bank weakened the currency’s reference rate amid concern a slowdown in the world’s second-largest economy will deepen.
A measure of expected swings in the ringgit headed for a second weekly drop after Malaysia’s central bank damped market speculation that interest rates will rise.
The won is strengthening at the fastest pace since 2011 as improving economies in the U.S. and Europe brighten the outlook for South Korea’s exports, spurring demand for the Asian nation’s assets.
South Korea’s won headed for its first weekly drop in a month on speculation global funds repatriated stock dividends and as improving U.S. economic data bolstered demand for dollars.
India’s rupee snapped three days of losses after Federal Reserve Chair Janet Yellen signaled the U.S. central bank will maintain economic stimulus that’s bolstered demand for emerging-market assets.
China’s interest-rate swaps fell by the most since June after the government said it will lower reserve-requirement ratios at some rural banks.
India’s 10-year sovereign bonds fell for the third day on concern an auction of 200 billion rupees ($3.3 billion) of notes by the government will curb demand for existing debt.