Rupiah leads Asian gains as outlook improves
The Asia Dollar Index climbs 0.2% as investors pour funds into the regional markets
Singapore: Indonesia's rupiah led gains in Asian currencies after international investors raised holdings of the region's assets on signs some of its economies are withstanding the impact of Europe's debt crisis.
The Bloomberg-JPMorgan Asia Dollar Index approached the highest level since September as exchange data showed funds poured $3.1 billion (Dh11.37 billion) this month into Indian, South Korean, Thai and Taiwanese shares. Indonesia's gross domestic product expanded 6.46 per cent last year, the most since 1996, official data showed on Monday. Thailand's economy will grow 4.6 per cent in 2012, more than an earlier estimate of 4.2 per cent, Goldman Sachs Group said on Monday.
"Growth is still relatively strong and could potentially attract inflows once we have good news flow from Europe," said Jonathan Cavenagh, a currency strategist at Westpac Banking Corp in Singapore.
The rupiah appreciated 0.5 per cent to 8,943 per dollar in Jakarta, according to prices from local banks compiled by Bloomberg. The won advanced 0.2 per cent to 1,118.53 while the Philippine peso erased the day's losses to climb 0.3 per cent to 42.405. The Thai baht and Taiwan's dollar rose 0.1 per cent to 30.93 and NT$29.570, respectively.
The Asia Dollar Index, which tracks the region's 10 most-traded currencies excluding the yen, climbed as much as 0.2 per cent to 117.68. The MSCI Asia Pacific Index of shares gained as much as 0.3 per cent as Greece continues talks with creditors.
Greek Prime Minister Lucas Papademos plans to discuss with the nation's political leaders the implementation of additional fiscal measures for a second EU bailout package.
Watching Greece
"Investors are waiting for a more definitive direction on developments in Greece," said Ivy Leung, a Taipei-based fixed-income trader at Polaris Securities Co.
China's yuan rose 0.11 per cent to 6.3049 per dollar in Shanghai. The currency snapped a two-day drop on speculation policymakers will seek stability in the currency before Chinese Vice President Xi Jinping visits the US next week. "Ahead of Xi's visit to the US, the currency issue may emerge again," said Teck Kin Suan, an economist at United Overseas Bank Ltd. in Singapore.
