Southeast Asian currencies rallied as U.S. economic data that trailed estimates weakened the greenback, and political developments in Indonesia spurred the rupiah to its biggest gain since March.
Macquarie Group Ltd. and Barclays Plc recommend buying Thai credit-default swaps as yesterday’s coup will push up the cost of the contracts and heighten the risk of a ratings downgrade.
The yuan fell for a third day, completing its first weekly drop in almost a month on signs policy makers are limiting gains in the currency to protect exports as Europe’s debt crisis deepens.
Yuan forwards recovered from their steepest slide in 22 months on optimism policy makers will heed a call by the U.S. urging China to allow a stronger currency. Government bonds were little changed.
China’s yuan posted its biggest weekly loss against the dollar since December 2008 on signs the U.S. economic recovery is gaining momentum.
Yuan forwards climbed toward a one- month high after China’s central bank signaled an end to the currency’s two-year peg to the dollar.
"The reform momentum, at least from the growth perspective, is probably slowing."
- Nizam Idris on Aug 14, 2014