A gauge of 20 emerging-market currencies increased to a four-month high and has advanced 7.9 percent from its 2016 lowpoint on Jan. 20. The onshore yuan climbed 0.18 percent as the PBOC strengthened its fixing by 0.51 percent.
South Korea’s won rallied 1 percent, heading for its biggest two-day gain since June 2010, and Taiwan’s dollar climbed 0.8 percent after closing up by the same magnitude on Thursday. Thailand’s baht was the only Asian currency to weaken, falling 0.3 percent.
Taiwanese sovereign bonds rose, pushing to the 10-year yield down three basis points to a record low 0.78 percent. Indonesian two-year notes advanced after the country’s central bank cut its benchmark rate for the third month in a row on Thursday. The yield fell four basis points to 7.49 percent, taking its decline this year to 112 basis points.
“There’s still a possibility for Bank Indonesia to cut rates further this year,” said Toru Nishihama, an emerging- market economist at Dai-ichi Life Research Institute Inc. in Tokyo. “Fund inflows to bonds are likely to continue.”