
May 23 — Asian currencies rose, with India’s rupee posting its best week in more than a decade, as global investors piled into emerging-market equities and the dollar slumped on concern the U.S. will lose its top credit rating.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the 10 most-active regional currencies against the greenback, climbed to the highest level in more than four months yesterday. Standard & Poor’s lowered its outlook on the U.K.’s AAA rating to negative this week because of rising debt levels, while Bill Gross at Pacific Investment Management Co. said the U.S. may “eventually” have to forfeit its top grade.
“Asian currencies are strong as market participants focus on a possible downgrade of the U.S. sovereign,” said Jerry Yoshikoshi, a senior analyst with the treasury unit of Sumitomo Mitsui Banking Corp. in Singapore. “But risk aversion is likely to pick up again, which in turn may weigh on Asian currencies.” More »
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