Asian Currencies Headed for Weekly Gain

Asian currencies headed for their biggest weekly gain in almost two months as signs the Federal Reserve will delay raising interest rates buoyed demand for emerging-market assets.

The Bloomberg Dollar Spot Index was poised for its first weekly decline since mid-August after minutes of last month’s Federal Open Market Committee meeting released Oct. 8 showed officials were concerned that slowing global growth and a stronger dollar posed risks to the U.S. economy. Futures traders cut bets to a 33 percent chance the Fed will raise its benchmark rate by July, down from 45 percent on Oct. 7.

“The market had been very positively inclined towards the dollar and then suddenly the Fed minutes have pulled the rug out from under them,” said Michael Every, the head of Asia Pacific financial-markets research at Rabobank International in Hong Kong. “They showed the Fed is far more dovish than it had previously been expected to be.”

Bloomberg

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