Asian currencies had the best week since September 2012, led by Indonesia’s rupiah and India’s rupee, as signs the U.S. economic recovery is losing pace fueled speculation the Federal Reserve will slow further stimulus cuts.
Indonesia’s rupiah led a rally in Asian currencies this month with the biggest gain since 2009, as data in the U.S. that missed forecasts raised speculation the Federal Reserve will scale back its tapering.
The Bakrie family’s attempt to convert $1.3 billion of debt into equity at Indonesia’s PT Bumi Resources and to cut business ties with U.K. financier Nathaniel Rothschild is being stymied by slumping coal prices.
Emerging-market stocks climbed to the highest level in more than three weeks, led by industrial and financial companies, as record Chinese lending bolstered prospects for growth in the world’s second-largest economy.
The Philippine peso rose for a second week, the longest run of gains since October, after export growth exceeded estimates and Federal Reserve Chair Janet Yellen said U.S. stimulus cuts will be “measured.”