Asian Currencies Advance, Led by Baht, on Fed Easing Optimism

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Asian currencies gained, led by Thailand’s baht, on speculation the Federal Reserve will unveil a third round of quantitative easing, a policy that boosts the supply of dollars and spurs demand for emerging-market assets.

The baht and South Korea’s won rose the most in a week after Fed Chairman Ben S. Bernanke said Aug. 31 that U.S. joblessness was a “grave concern” and further monetary easing can’t be ruled out. Chinese factory output unexpectedly shrank for the first time in nine months in August, a government survey showed Sept. 1.