Asian currencies will extend their biggest slide in three years through December before rebounding in early 2012 as export demand picks up, said Standard Chartered Plc, the most-accurate forecaster for the region.
The Philippine peso is the only Asian emerging-market currency that forecasters have become more bullish on this year as the nation’s improving economy increases the chance it will win an investment-grade credit rating.
China’s foreign-exchange reserves rose last quarter by the most in more than two years, a sign the government’s efforts to protect growth attracted money even as developing nations from India to Indonesia saw capital exit.
Malaysia’s ringgit fell to an eight-week low after signs of a recovery in the U.S. housing market bolstered the case for the Federal Reserve to scale back stimulus that’s spurred gains in emerging-market assets.
India’s rupee is likely to strengthen as measures to solve a debt crisis in Europe spur demand for assets in the best-performing economies and policy makers favor appreciation to help tame inflation, Standard Chartered Plc said.