Asian currencies rose, led by the Indonesian rupiah and South Korea’s won, as optimism a global recession is easing bolstered demand for emerging-market assets.
Seven out of the region’s 10 most-traded currencies outside of Japan climbed and stocks rallied after the Federal Reserve said the pace of contraction slowed in several of the nation’s biggest regional economies last month. Currencies and stocks pared gains after China reported today that its economy expanded at the slowest pace in almost a decade in the first quarter.
“There was a good bid tone to regional currencies on some momentum to the view that the first quarter may have represented a trough in the real data,” said Dwyfor Evans, a currency strategist with State Street Global Markets in Hong Kong. “However, when there are renewed concerns over corporate earnings or other numbers, the market can swing very quickly.”
The rupiah strengthened 1.3 percent to 10,750 per dollar as of 3:52 p.m. in Jakarta and the won rose 0.5 percent to 1,332.10, nearing a three-month high, ,according to data compiled by Bloomberg. The MSCI Asia Pacific index of regional shares climbed 0.3 percent, after rising as much as 2.2 percent.
From Bloomberg News