Thailand's baht declined the most in more than five weeks as concern that stalled United States budget talks will hamper efforts to revive the global economy reduced demand for emerging-market assets.
Congress will return on Thursday to resume negotiations aimed at averting more than US$600 billion in automatic tax increases and spending cuts, due early next year, that could hurt the world's largest economy. Huang Guobo, chief economist and director of the reserves management department at China's State Administration of Foreign Exchange, said the country does not plan large economic stimulus measures, according to comments posted on Tsinghua University's website.
"SAFE's comment suggested that China isn’t going to play Santa and the US Congress certainly isn't inclined to do so," said Vishnu Varathan, a Singapore-based economist at Mizuho Corporate Bank Ltd. "People are getting out of risk."
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