Asian currencies headed for their best week in seven months as Japan’s monetary easing spurred inflows into the region’s assets, and China’s central bank said it would widen the yuan’s trading band.
The Chinese currency rallied the most this week since January and touched a 19-year high on April 17, the same day state-run media reported the limit would be expanded. The baht touched a 16-year high today after overseas investors bought $1.7 billion more local sovereign notes than they sold this month, Thai Bond Market Association data show.
“Foreign direct divestment is particularly strong in Southeast Asian countries like Thailand, as the return on assets is high,” said Boon Peng Ooi, who oversees $20 billion as the chief investment officer of fixed income at Eastspring Investments Singapore Ltd. “We continue to see moderate gains in Asian currencies.”
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