Thailand's baht advanced toward its strongest level in two weeks and government bonds fell after policy makers from the world's leading economies agreed to coordinate their response to Europe's financial crisis.
The Bloomberg-JPMorgan Asia Dollar Index climbed the most in eight weeks and the MSCI Asia-Pacific Index of shares rose after Japanese Finance Minister Jun Azumi said on Tuesday that officials from the Group of Seven nations will work together to help put the public finances of Spain and Greece on a sustainable footing.
"Coordinated support will help stabilise the situation in Europe," said Hideki Hayashi, a researcher at the Japan Centre for Economic Research in Tokyo. "That is leading to better sentiment in emerging-market stocks and currencies. However, this will be only temporary as the debt problem still persists."
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