Koji Fukaya News
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Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.
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The dollar may extend this year’s 12 percent climb against the euro even after Europe crafted a $1 trillion plan to rescue Greece and other debt-laden governments, said Deutsche Bank AG, the world’s biggest currency trader.
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A flood of money out of Malaysia should reverse, easing inflows into Thailand, Eastspring Investments and Societe Generale SA said, as Prime Minister Najib Razak looks set to remain in power after elections.
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Thailand’s baht was poised for its fourth weekly advance and government bonds rose as global funds boosted holdings of local debt after Fitch Ratings raised its assessment of the Southeast Asian nation.
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Asian currencies dropped this week, led by Malaysia’s ringgit and South Korea’s won, on speculation the Federal Reserve won’t extend monetary easing and regional central banks will intervene to curb appreciation.
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Costa Rica and Thailand joined a growing chorus of developing nations expressing alarm at the appreciation of their currencies as increased monetary easing in the U.S. and Japan spurs demand for higher-yielding assets.
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Japan is likely to intervene in the foreign-exchange market if the yen strengthens to the 75 level against the dollar again after reaching a postwar high last week, Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG said in an interview. Investor trading will probably reflect nervousness and be driven by movements in U.S. stocks and comments by Japanese officials, he said.
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Koji Fukaya , a former senior currency strategist at Deutsche Bank AG, will start today as chief currency strategist at Credit Suisse Group AG in Tokyo.
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Former Thai Premier Thaksin Shinawatra said his sister’s government will avoid conflicts like those that led to his ouster in a 2006 coup, even as it presses ahead with efforts to curb the power of the courts.
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Thailand’s baht advanced, halting a two-week loss, on speculation accelerating growth will attract investment to Southeast Asia’s second-largest economy.
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