An official report tomorrow on China's Purchasing Managers' Index may show manufacturing expanded for a second month in November, according to a separate Bloomberg survey. The yuan gained 0.04 percent this week to 6.2267 per dollar, according to China Foreign Exchange Trade System. It touched a 1993 high of 6.2223 on Nov. 27 and tested the upper- limit of its trading band on each of the five days.
“There's pent-up demand for the yuan,” said Andy Ji, a Singapore-based foreign-exchange strategist at Commonwealth Bank of Australia. The currency is also supported by a trade surplus that has surpassed $180 billion this year, he said.
Elsewhere, the Philippine peso appreciated 0.4 percent from a week ago to 40.895 per dollar before a public holiday today. Thailand's baht rose 0.1 percent to 30.67 per dollar, and Vietnam's dong was little changed at 20,850. Taiwan's dollar climbed 0.2 percent to NT$29.116 per dollar, its second weekly advance.
Eoin Treacy's view The Asian Dollar Index broke successful above the 118 level yesterday to post a new 14-month high and a sustained move below 117.4 would be required to question medium-term scope for additional upside. Generally speaking appreciating currencies have been a tailwind for Asian equity markets.Back to top