Asia Currencies in Weekly Drop as Fed Easing Curbs Spook Markets
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Asian currencies fell, with India’s rupee touching a record low, on concern U.S. policy makers will pare stimulus that has driven inflows to emerging markets.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies, dropped 0.2 percent to 116.74 and was 0.7 percent off a nine-month low reached June 11. Bets that the Federal Reserve will cut bond purchases spurred record outflows of $14.4 billion from global bond funds in the week to June 12 and $8.5 billion from equities, a Citigroup Inc. report said citing EPFR data. The MSCI Asia Pacific Index of stocks rose yesterday after posting its biggest loss in three weeks on June 13 as the World Bank cut global growth estimates.