Asian Currencies Lower Last Week as U.S. Data Boost Dollar

Asian currencies completed their biggest weekly decline in three months as data signaling a strengthening U.S. recovery boosted demand for the dollar.

Second-quarter growth in the world’s largest economy topped the median estimate in a Bloomberg survey and a jobless claims average fell to an eight-year low, reports showed this week. The Bloomberg Dollar Spot Index gained 0.9 percent in the past five trading days, the most since November, as the U.S. and Europe stepped up pressure on Russia over Ukraine and as Standard & Poor’s declared Argentina in default on a debt payment.

“Asian currencies are increasingly succumbing to dollar strength,” said Mitul Kotecha, head of foreign-exchange strategy for Asia-Pacific at Barclays Plc in Singapore. “There’s been an element of risk aversion as well.”

Bloomberg

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