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 yesterday 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 dollar in Bangkok yesterday 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 basic trend remains for Asian currencies to strengthen due to fund inflows and the economic growth story,” Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo, said yesterday in an interview. “Given the very fast appreciation in regional currencies recently, we may see intervention from some central banks.” 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 Oct. 7, the highest level in more than two years. Thailand’s Prime Minister Abhisit Vejjajiva said the Cabinet will consider measures next week to help reduce the impact from the baht’s strength. Japan last month intervened in the foreign-exchange market for the first time in six years to rein in yen gains. Regulators in South Korea are due to start an audit of lenders handling currency derivatives on Oct. 19. Asian Growth Asia’s developing economies will expand 9.4 percent in 2010, outpacing growth of 2.7 percent in advanced countries, the International Monetary Fund forecast on Oct. 6. Overseas investors have pumped more than a net $37 billion into Indian, South Korean and Taiwanese equities this year, according to exchange data. Taiwan’s dollar completed a sixth weekly gain after the government Oct. 7 reported an 11th straight increase in monthly exports for September. “Hot money is a global problem because everyone is doing quantitative easing, especially in America,” said Albert Lee, a fixed-income trader at Cathay United Bank Co. in Taipei. “More money is coming out. This money has got to go somewhere and it is going to Asia.” China’s yuan rose to the highest level against the dollar since 1993 yesterday 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 weeklong 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 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. To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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