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.
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.
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.
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.
"Yields on Malaysian debt are tracking U.S. Treasuries, which are rising because of optimism over the global outlook."
- Nizam Idris on Oct 23, 2014