South Korea’s won is leading a drop in Asian currencies this year, after gaining the most in the second half of 2013, as tapering of U.S. stimulus drains funds from emerging-market assets and China’s economy slows.
The yuan is poised to recover from declines that have made it Asia’s worst-performing currency as China seeks to prevent an exodus of capital that would threaten economic growth, according to the most accurate forecasters.
The People’s Bank of China said the country does not benefit any more from increases in its foreign- currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.
The gap in Canadian and U.S. benchmark interest rates is at a 15-year high based on the Taylor rule formula for determining optimal rates, signaling borrowing costs are poised to rise further in Canada.
Canada’s dollar erased a gain against its U.S. counterpart after a drop in crude oil prices increased speculation demand will wane for currencies of nations that are dependent on commodities for growth.
Canada’s dollar reached its strongest level in 2 1/2 years versus the greenback, capping a second straight annual advance, as oil at a 26-month high burnished the allure of currencies tied to global growth.