Asian currencies recorded their biggest weekly decline since April as an improving US economy fed speculation that the US Federal Reserve would bring forward its timetable to raise interest rates.
Fed officials are to review policy on Tuesday and Wednesday in the wake of reports this week showed US job openings held close to a 13-year high in July and consumer credit growth beat economists’ estimates. An increase in interest rates in the world’s largest economy would reduce the lure of higher-yielding emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index dropped 0.4 percent from Sept. 5, the steepest decline since the period ended April 25.
The New Taiwan dollar closed the week 0.2 percent lower against the US currency.
On Friday, the greenback rose against the NT dollar, gaining NT$0.008 to close at the day’s high of NT$30.068, dealers said.
While local exporters bought into the NT dollar, foreign institutional investors moved their funds out, keeping it in a relatively narrow band, they said.
The central bank also intervened to prop up the US dollar and help it close above its previous closing level for the fifth consecutive session, dealers said.
Late in Friday’s session, the central bank stepped in to give another boost to the US dollar and vault it back into positive territory for the day, they said.
South Korea’s won slid 1.1 percent to 1,035.35 per dollar in Seoul, data compiled by Bloomberg show. India’s rupee fell 0.4 percent to 60.66 and Thailand’s baht eased 0.7 percent to 32.198.
The baht recorded its biggest weekly drop in more than a month after foreign funds pulled a net US$499 million from Thai local-currency bonds in the week, exchange data show.
Elsewhere in Asia, the Philippine peso fell 0.6 percent to 43.915 per dollar and Indonesia’s rupiah declined 0.5 percent to 11,818. The Malaysian ringgit retreated 0.5 percent to 3.1972 and the Vietnamese dong was little changed at 21,200.
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