Asian currencies gained this week on signs policy makers in Europe and the U.S. will boost efforts to revive growth, boosting fund flows into emerging-market assets.
Many U.S. policy makers favored a new large-scale asset- purchase program to â€œprovide additional support for the economic recovery,â€ according to minutes from the Federal Reserveâ€™s latest meeting released this week. German Chancellor Angela Merkel said yesterday that her country and France will coordinate on their approach to keep pressure on Greece to overhaul its economy. Stock markets in South Korea, Taiwan and Indonesia attracted a total $1.2 billion of foreign capital this week through yesterday, exchange data show.
â€œThere are some positive signs coming from Greece, and the Fed said further easing may be warranted soon,â€ said Choong Yin Pheng, senior manager for fixed income and economic research at Hong Leong Bank Bhd. (HLBK) in Kuala Lumpur. â€œThis is keeping risk currencies supported.â€