Malaysia’s ringgit was set for the biggest advance among Asian currencies this week amid the fastest economic growth in a year. India’s rupee extended gains after the clearest election verdict in three decades.
Southeast Asia’s third-biggest economy expanded 6.2 percent in the first quarter, while the inflation rate eased in April from the highest level in almost three years, reports over the past week showed. Prime Minister designate Narendra Modi’s Bharatiya Janata Party won India’s first single-party majority since 1984 in national elections, spurring optimism the new government will introduce reforms to spur economic growth.
Malaysia’s economic and inflation data are “painting quite a strong domestic backdrop,” said Jonathan Cavenagh, a Singapore-based currency strategist at Westpac Banking Corp. “In India, it’s been a carry-on from the election euphoria.”
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