The euro weakened against its higher- yielding peers as the European Central Bank’s commitment to its package of stimulus measures boosted demand for currencies including Malaysia’s ringgit and South Africa’s rand.
Malaysia’s ringgit halted a three-day loss on speculation the European Central Bank will lower its deposit rate to below zero today, potentially spurring inflows to higher-yielding emerging-market assets.
Malaysia’s ringgit led an advance among Asian currencies this week amid the fastest economic growth in a year. India’s rupee extended its stretch of gains after the clearest election verdict in three decades.
IG Ltd. and Westpac Banking Corp. predict the Australian dollar will weaken this year as waning expectations of interest-rate increases by the Reserve Bank and technical indicators point to declines in the currency.
Asian currencies completed a weekly gain, led by the won’s advance to a five-year high, as data signaled a continued recovery in the region’s economies and on bets U.S. borrowing costs will remain low.