Asian currencies had their biggest weekly gain in more than a month as signs a global recession is easing encouraged investors to buy emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, climbed 1.3 percent this week, while the MSCI Asia-Pacific Index jumped 7.6 percent. South Korea’s won on Friday climbed to a six-month high after research firm EPFR Global said developing Asia was the biggest recipient of new investment in equity funds this month.
The won appreciated 2.9 percent this week to 1,246.90 per dollar, according to data compiled by Bloomberg. Indonesia’s rupiah jumped 2.3 percent to 10,374 and the Singapore dollar climbed 0.9 percent to S$1.4659.
Like the greenback, the yen fell against Asia’s other most-used currencies this week as the prospect of a global economic recovery fueled demand for higher-yielding assets.
The New Taiwan dollar had a third weekly gain, on optimism thawing relations with China will help lift Taiwan out of a recession. The TAIEX stocks index jumped 9.9 percent, its best weekly performance in more than six years, as overseas investors bought a net NT$75.5 billion (US$2.3 billion) worth of Taiwanese shares.
“There’s clear optimism that Taiwan would be one of the economies to benefit more directly through investment inflows and goodwill from the mainland,” said Nizam Idris, a currency strategist with UBS AG in Singapore.
The NT dollar rose 0.6 percent to NT$33.040 against the greenback, according to Taipei Forex Inc. It reached NT$32.833 on Monday, the highest level this year.
Malaysia’s ringgit advanced 1.2 percent to 3.5180 per dollar, according to data compiled by Bloomberg.
Elsewhere, the Philippine peso gained 2.3 percent to 47.257 per dollar, its best performance this year, and the Thai baht rose 1.1 percent to 34.88. India’s rupee climbed 1.6 percent to 49.28. China’s yuan was little changed at 6.8218 versus 6.8230 the previous week.
The US dollar declined to a six-week low against the euro as a government report showed US employers cut fewer jobs last month than economists forecast, reducing demand for relative safety.
The US dollar lost as much as 1.8 percent to US$1.3633 versus the euro, the weakest level since March 26, before trading at US$1.3633 at 4:20pm in New York on Friday. The US currency dropped 0.7 percent to ¥98.44, from ¥99.12. The euro increased 1.1 percent to ¥134.20, from ¥132.71.
The Canadian dollar increased as much as 1.8 percent to C$1.1491, the strongest level since Nov. 5.
The currency was 3 percent higher this week, its sixth straight weekly gain.
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