Asian currencies posted their biggest weekly decline in a month, led by India’s rupee, as weaker-than-forecast U.S. economic data and Europe’s debt crisis damped demand for riskier assets. More Americans filed claims for jobless benefits in the week ended April 14 and sales of previously owned homes unexpectedly dropped in March, reports showed this week. Spanish bond yields rose to a four-month high at an auction of 10-year securities on April 19. The MSCI Asia-Pacific Index (MXAP) of stocks dropped 0.8 percent for the week. “Lingering concerns about the European debt crisis and a slowing U.S. recovery are making it a bit hard to add risk positions,� said Kozo Hasegawa, a Bangkok-based trader at Sumitomo Mitsui Banking Corp. The rupee slid 1.5 percent this week to 52.0850 per dollar yesterday in Mumbai, the biggest drop since the five days ended March 23, according to data compiled by Bloomberg. Indonesia’s rupiah fell 0.5 percent to 9,183 and Malaysia’s ringgit weakened 0.4 percent to 3.0643. Global funds sold $1.23 billion more Indonesian, South Korean and Taiwanese shares than they bought this week, exchange data show. The Bloomberg-JPMorgan Asia Dollar Index lost 0.2 percent since April 13 and its 60-day historical volatility was 3.04 percent yesterday, compared with 3.27 percent on April 13. U.S., Europe U.S. jobless claims fell by 2,000 to 386,000 in the week ended April 14 from a revised 388,000 the prior period, Labor Department figures showed April 19 in Washington. The median forecast of 47 economists surveyed by Bloomberg News was for a drop to 370,000. Purchases of homes fell 2.6 percent to a 4.48 million annual rate in March, the National Association of Realtors reported in Washington. Spain auctioned 10-year debt at 5.74 percent on April 19, compared with 5.40 percent at the last sale on Jan. 19. France sold five-year notes at an average yield of 1.83 percent at a separate auction, up from 1.78 percent on March 15. China’s yuan declined 0.09 percent this week to 6.3085 per dollar after the nation widened the currency’s trading band to 1 percent from 0.5 percent from April 16. The band, which is centered on a rate set daily by the central bank, was last broadened in May 2007 from 0.3 percent. The central bank weakened the yuan’s daily reference rate against the dollar on four out of five days this week. Korea Risk The won posted a second weekly loss, falling 0.4 percent to 1,139.55. North Korea said it will continue its space program following the failure of a rocket launch on April 13, according to a statement April 19 that the North’s official Korean Central News Agency attributed to a spokesman for the Korean Committee for Space Technology. South Korea unveiled new cruise missiles yesterday that it said could hit anywhere in North Korea. The military has deployed the missiles and is making preparations to ensure it can respond firmly to North Korean provocations, Defense Ministry spokesman Kim Min Seok said. “The won is facing downward pressure with North Korea- related risks and concerns about the global economic recovery,� said Han Sung Min, a Seoul-based currency trader at Busan Bank. Elsewhere, Thailand’s baht weakened 0.6 percent from April 12 to 30.90. Thailand’s onshore financial markets were closed on April 13 and April 16 for public holidays. The Philippine peso climbed 0.1 percent to 42.607, while Taiwan’s dollar was little changed at NT$29.521. Vietnam’s dong gained 0.4 percent to 20,838. To contact the reporters on this story: Jiyeun Lee in Seoul at jlee1029@bloomberg.net Yumi Teso in Bangkok at yteso1@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.

Source