Asian currencies rose for a sixth week, the longest winning streak in a year, on speculation the Federal Reserve will pump more money into its economy, increasing funds available to invest in higher-yielding assets.
The currencies retreated from their highs on Friday on concern regional central banks will intervene or introduce measures to stem gains. Thailand’s baht fell from a 13-year high, dropping 0.7 percent to 30.08 per US dollar in Bangkok on Friday and trimming its five-day appreciation to 0.5 percent, according to data compiled by Bloomberg. South Korea’s won declined 0.5 percent to 1,120.15, paring its weekly gain to 0.9 percent.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, rose 0.1 percent from a week ago to 115.10. It reached 115.46 on Thursday, the highest level in more than two years.
The New Taiwan dollar completed a sixth weekly gain, its longest winning streak in a year, as speculation the Federal Reserve will print more money to support an economic recovery weighed on the greenback.
The currency advanced 0.7 percent this week after the government on Thursday reported an 11th straight increase in monthly exports last month. The currency was up 0.4 percent a minute before reversing Friday’s gain in the final minute of trading amid suspected intervention.
The NT dollar fell NT$0.053, or 0.17 percent, to NT$31.095 against its US counterpart on Friday, according to Taipei Forex Inc.
It was up 1.5 percent a minute before trading ended on Friday, before surrendering the bulk of its advance. The currency on Friday touched NT$30.675, the strongest level since August 2008.
“Hot money is the common factor that moves currencies of emerging markets” and the central bank will monitor foreign-investor flows into deposit accounts, central bank Governor Perng Fai-nan (彭淮南) said on Sept. 30 after a policy meeting.
China’s yuan rose to the highest level against the US dollar since 1993 on Friday on speculation the country will let the currency strengthen more quickly as international leaders step up calls for faster appreciation.
The yuan gained 0.3 percent to 6.6734 from Sept. 30, the last trading day before a week-long holiday. It touched 6.6703, the strongest level since the central bank unified official and market exchange rates at the end of 1993.
Malaysia’s ringgit dropped 0.9 percent this week to 3.1105 per US dollar. Singapore’s currency gained 0.1 percent to S$1.3111 and the Philippine peso climbed 1 percent to 43.445. Indonesia’s rupiah fell 0.2 percent to 8,938.
The US dollar fell against the euro for a fourth week in the longest stretch of losses in almost two years as bigger-than-expected US job cuts spurred speculation that the Federal Reserve will buy more debt.
The US dollar decreased for a third week against the yen, dropping 1.6 percent to ￥81.93, from ￥83.22 on Oct. 1. It touched ￥81.73 on Friday, the lowest level since April 1995. The greenback fell 1.1 percent to US$1.3939 per euro, from US$1.3791, in its fourth weekly decline. It touched US$1.4029 on Thursday, the weakest since Jan. 28. The euro decreased 0.5 percent to ￥114.19, from ￥114.78, after touching ￥115.68, the highest since May 14.
The yen ended the week stronger than ￥82.88 per US dollar, where it traded on Sept. 15, when Japan acknowledged intervening in the currency market.
The pound advanced 0.9 percent to US$1.5960 after the Bank of England held the target for bond holdings at ￡200 billion (US$319 billion). Sterling touched US$1.6018 on Thursday, the level since Feb. 3.
Additional reporting by CNA, with staff writer
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