bgbl: Asia Currencies Gain, Led by Rupee, Peso, as Growth Outlook Attracts Funds
Asian currencies strengthened, led by India’s rupee and the Philippine peso, on speculation inflows will climb as regional economies lead a global recovery.
The Bloomberg-JPMorgan Asia Dollar Index rose to a five- week high and the MSCI Asia Pacific Index of shares was headed for its best close in more than two months, after earlier losses. Singapore’s gross domestic product increased a record 18 percent in the first half of 2010 and the city-state’s central bank today forecast “high levels” of economic activity for the rest of the year. Global funds have pumped about $7 billion into stock markets in India, South Korea and Taiwan this month alone.
“The recovery in stock markets makes people less risk averse, making it easier to buy emerging-market currencies,” said Dariusz Kowalczyk, a Hong Kong-based senior economist and strategist at Credit Agricole CIB. “The solid growth in the region supports Asian currencies.”
The rupee appreciated 0.3 percent to 46.623 per dollar as of 2:31 p.m. in Mumbai, according to data compiled by Bloomberg. The peso gained 0.3 percent to 45.713 and the Singapore dollar strengthened 0.2 percent to S$1.3633. Indonesia’s rupiah advanced 0.3 percent to a three-year high of 8,980.
Singapore’s growth is supported by a broad range of industries that will remain “largely intact” in 2010, the Monetary Authority of Singapore said in its annual report today. The government predicts GDP will increase 13 percent to 15 percent this year.
Expanding Economies
Thailand’s economy expanded about 8 percent in the second quarter, after 12 percent growth in the previous three months, Satit Rangkasiri, head of the finance ministry’s fiscal policy office, said today in Bangkok. Philippine growth may be “higher” in the second quarter than the 7.3 percent pace reported for the first three months of 2010, Economic Planning Assistant Director Myrna Asuncion said yesterday.
The Asia Dollar Index, which tracks the region’s 10 most- used currencies excluding the yen, climbed 0.2 percent to 111.77 and the MSCI Asia Pacific Index of shares rose 0.2 percent.
South Korea’s won slid 0.2 percent to 1,186.5 per dollar, according to data compiled by Bloomberg. The currency reached a five-week high of 1,181.33 on July 27 before retreating yesterday as traders said the Bank of Korea bought dollars to counter appreciation.
Elsewhere, Taiwan’s dollar reached a five-week high of NT$31.85, before closing little changed at NT$32.068 in Taipei. Malaysia’s ringgit rose 0.2 percent to 3.1883 and Thailand’s baht was little changed at 32.25.
