BLBG:Asian Currencies Rally a Third Week as U.S. Data Boosts Investor Sentiment
Asian currencies rose for a third week after reports signaled a pickup in U.S. economic growth, spurring inflows into emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index (ADXY), which tracks the region’s 10 most-active currencies excluding the yen, added to this year’s rally after claims for jobless benefits among Americans held at a four-year low. The Federal Reserve said on Feb. 29 the economy expanded at a “modest to moderate pace” in January and early February as factories increased production.
“The U.S. economy is picking up momentum and we’re seeing strong stock performances,” said Stanford Chen, a Taipei-based fixed-income manager at KGI Securities Co. “Risk-taking sentiment is going to dominate in the short term.”
The Asia Dollar index climbed 0.24 percent this week to 117.77 as of 11:19 a.m. in Singapore, approaching a five-month high of 118.04 reached on Feb. 29. South Korea’s won gained 1.1 percent to 1,114.15 per dollar in Seoul and Malaysia’s ringgit climbed 0.5 percent to 2.9975, according to data compiled by Bloomberg. Taiwan’s dollar rose 0.5 percent to NT$29.424 and the Philippine peso added 0.3 percent to 42.685.
Overseas funds purchased $1.2 billion more stocks than they sold in South Korea and Taiwan this week, with the two countries attracting the biggest inflows in Asia outside Japan. The MSCI Asia-Pacific Index of shares rallied for an 11th week, gaining almost 20 percent from its Oct. 5 low.
Korea Exports Improve
Reports from the U.S. this week showed consumer confidence reached a one-year high in February and gross domestic product increased last quarter by more than economists predicted. The European Central Bank gave 529.5 billion euros ($705 billion) in three-year loans to 800 banks this week.
South Korea’s won touched the strongest level since November today after exports rose 22.7 percent from a year earlier last month following a decline in January, a government report showed yesterday. The nation had a trade surplus of $2.2 billion. Consumer prices increased 3.1 percent, the least since December 2010, according to official data issued today.
“South Korea’s surplus and cooling inflation, despite oil- price spikes, are supporting investor sentiment,” said Kim Doo Hyun, a Seoul-based senior currency dealer at Korea Exchange Bank.
Elsewhere, Thailand’s baht fell 0.4 percent to 30.49 per dollar this week and India’s rupee slipped 0.6 percent to 49.22. Vietnam’s dong and China’s yuan were little changed at 20,830 and 6.2981. Indonesia’s rupiah climbed 0.1 percent to 9,107.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net
To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.
