Asian currencies posted the biggest weekly rally in a month after a rebound in China trade data boosted the outlook for regional exports and growth.
South Korea’s won led the advance, helping spur a 0.3 percent gain in the Bloomberg-JPMorgan Asia Dollar Index. Overseas shipments from the world’s second-biggest economy rose 5.1 percent in July, while imports increased 11 percent, with both figures beating forecasts and recovering from a contraction in June. The numbers come amid concerns about a possible end to the Federal Reserve’s monetary stimulus that has driven demand for emerging-market assets.
“China’s better-than-expected trade data turned sentiment and supported many Asian currencies,” said Jahng Won, a foreign-exchange trader at Shinhan Bank in Seoul. “External factors such as the Fed’s tapering schedule are what investors are more concerned about.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.