The third-highest local-currency yields aren’t enough to lure Turks, who are putting record amounts of cash into dollar deposits on concern the lira is vulnerable in the run-up to presidential elections.
India’s strongest electoral mandate in 30 years puts Narendra Modi in a position to pass measures to bolster Asia’s third-biggest economy, spurring optimism it will lead a recovery among the biggest emerging markets.
India’s central bank said foreign funds that have sold offshore derivatives of local stocks and bonds must get their customers’ approval to hedge currency risk on the underlying onshore investments. The rupee rebounded.
The cost to insure against declines in South Korea’s won and South Africa’s rand surged as concern mounts that a nuclear disaster in Japan and conflict in the Middle East will derail the global economic expansion.
Taiwan’s dollar and the Indonesian rupiah are forecast to lead a recovery in Asian currencies next year as attention shifts to the region’s growth potential and away from the reduction in U.S. monetary stimulus.
South African bonds lured more foreign inflows in 2010 than shares for the first time after the fall of apartheid in 1994 as yields more than double those of 10-year U.S. Treasuries boosted the appeal of the debt.
China’s currency had the biggest weekly gain in six months and yuan forwards rose to a record after the central bank signaled plans to widen a trading band that’s been limiting appreciation since October.