Asia Currencies Strengthen This Week on Growth, Rate Outlooks

Asian currencies rose for a second week, led by Thailand’s baht, on speculation the world’s fastest economic growth and rising interest rates will spur more fund inflows from abroad.

The baht posted its biggest five-day advance since December 2008 as overseas investors increased holdings of local assets after the Pheu Thai party won a clear majority in elections last weekend, reducing the scope for political unrest. China raised borrowing costs July 6 and the Bank of Thailand is expected to do so next week. Global funds pumped about $1.6 billion into South Korean, Thai and Indonesian equities in the first four days of the week, exchange data show.