Asian Currencies Drop in Week on China Slowdown Signs, Fed Taper

Asian currencies declined for a third week, led by the Thai baht and Malaysia’s ringgit, amid concern a slowdown in China and U.S. stimulus cuts will deepen a selloff in emerging markets.

The Bloomberg JPMorgan-Asia Dollar Index fell 0.1 percent this week as a report signaled China’s manufacturing contracted for the first time in six months. The Federal Reserve said Jan. 29 it will pare its monthly bond purchases by $10 billion to $65 billion from February, following a similar reduction in January. The baht had its worst week in almost a month after global funds pulled money from the nation’s assets amid concern a Feb. 2 election will trigger more violence.