Asian currencies mostly declined this week, led by the Indonesian rupiah, as an 18 percent slide in China’s benchmark share index over the past month raised concerns about the strength of an economic recovery.
Malaysia’s ringgit, the Indian rupee and the Thai baht also dropped before a US Labor Department report yesterday that showed the number of people out of work rose to the highest level in 26 years last month. South Korea’s won advanced for a second week on speculation investors will increase holdings of the nation’s assets as economic growth accelerates.
The rupiah dropped 0.6 percent this week to 10,115 per US dollar in Jakarta, according to data compiled by Bloomberg. The ringgit fell 0.2 percent to 3.5265 in Kuala Lumpur and the baht dropped 0.1 percent to 34.06 in Bangkok. Korea’s currency climbed 0.3 percent to 1,241.20.
The yen posted a fourth weekly gain against the dollar as investors consider the currency as a so-called safe-haven given the outlook for a slow global recovery. The Japanese currency traded at ¥92.96 per dollar in New York of Friday, from ¥93.60 at the end of last week.
The New Taiwan dollar traded at NT$32.905 on Friday, compared with NT$32.925 at the end of last week.
Elsewhere, the Singapore dollar dropped 0.1 percent this week to S$1.4404 versus the greenback and India’s rupee fell 0.4 percent to 48.8613. The peso climbed 0.3 percent to 48.640.
The US dollar dropped against most of its major counterparts on speculation investors betting on a quick recovery in the global economy bought higher-yielding assets as G20 finance ministers convened.
The Brazilian real and South African rand posted the biggest advances against the greenback among the most-traded currencies this week as US employers slowed the rate of job cuts last month.
The greenback fell 0.6 percent to ¥93.01 on Friday, from ¥93.60 last Friday. The US currency was little changed at US$1.4311 per euro. The real climbed 2.2 percent to 1.8401 versus the US currency, and the rand advanced 2.1 percent to 7.5908.
The London interbank offered rate on three-month loans in dollars fell this week, declining for a 13th straight day on Friday to 0.31 percent, according to the British Bankers’ Association. The corresponding rate for funds in yen was higher at 0.38 percent.
The Australian dollar gained 1.2 percent this week to US$0.8515 and advanced 0.6 percent to ¥79.21.
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