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.
India’s rupee completed its third monthly loss after the central bank signaled steps taken in July to buoy the currency are temporary. Stocks and bonds fell.
Malaysia’s ringgit rose the most in four months, leading gains in Asia, on speculation fund flows to emerging markets will accelerate as their growth outpaces developed economies.
China’s planned economic reforms are burnishing the yuan’s credentials as a currency of global trade, pushing its offshore rate to the highest versus its domestic value in 10 months while damping volatility.
"We expect some foreign investors to add on to their current investments should Jokowi win the election with no protests or violence."
- Nizam Idris on Jul 20, 2014