Chinese Data leads Asian Currencies in Solid Week

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.”


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