Bangkok: Malaysia's ringgit and South Korea's won led gains in Asian currencies last week after data showed an economic recovery is gathering pace, encouraging funds abroad to raise holdings of regional shares.
The Bloomberg-JPMorgan Asia Dollar Index reached the highest level in 19 months as Korea and Thailand reported increases in factory output and exports, while China's manufacturing expanded at a faster rate. The ringgit advanced to its strongest in 20 months before a government report Friday that showed overseas sales of the nation's goods rose for a third month in February.
Risk appetite
"Investors put money into stocks and Asia is favoured for its stronger growth prospects, boosting regional currencies," said Hideki Hayashi, a global economist at Mizuho Securities Co. in Tokyo. "Risk appetite is growing with improvements in US economic data."
The ringgit appreciated 1.7 per cent last week to 3.2490 per dollar in Kuala Lumpur and reached 3.2437, the highest level since July 2008, according to data compiled by Bloomberg. The won rose 1.2 per cent to 1,125.85.
The Asia Dollar Index increased 0.4 per cent from March 26, while the MSCI Asia-Pacific Index of regional equities rallied 1.7 per cent and posted its best close in 11 weeks. Global investors bought a net $921 million (Dh3.4 billion) of Taiwan shares in the four days through April 1, $450 million in Korea and $200 million in Thailand, stock exchange data shows.
Malaysia's currency gained for a third day Friday before a US Labour Department report that showed employers in the world's biggest economy increased hiring in March by the most in three years.
