Asia Currencies Gain, Led by India, as Fed Easing Spurs Inflows

Asian currencies strengthened as the Federal Reserve’s asset-purchase plan spurred inflows into the region’s higher-yielding assets. India’s rupee rose to a four-month high after the government eased investment rules.

International investors increased holdings of Indonesian South Korean, and Taiwanese stocks by $1.8 billion on Sept. 14, a day after the Fed announced it would expand holdings of long-term securities with open-ended buying of $40 billion of mortgage debt per month in a third round of quantitative easing. India’s government allowed overseas retailers to invest in Asia’s third-largest economy, and said foreign airlines can own minority stakes in local carriers. The MSCI Asia Pacific Excluding Japan Index of shares rose to a four-month high.