Monday, December 7, 2009

Asia Currencies Fall, Led by Rupee, on Bets U.S. Rates to Rise

Dec. 7 (Bloomberg) -- Asian currencies dropped against the greenback, led by India’s rupee and the Singapore dollar, as better-than-forecast U.S. employment data spurred bets the Federal Reserve will raise interest rates next year.

The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, reached a 14-month high last week after investors took advantage of near- zero U.S. rates to fund investment in higher-yielding assets. A U.S. Labor Department report last week showed the jobless rate in the world’s largest economy unexpectedly declined last month.
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